Is GEAR an undervalued stock? 1. If you take th

Is GEAR an undervalued stock?

1. If you take the current Market Value and divide it by the O/S you will get the current price per share as per
    the last closing day.

     $3,401,829 / $147,905,619 = .0229 which was the range of the close of  GEAR  price Thursday 5.17.12

2. Look at the End of Year filing located here:  http://www.otcmarkets.com/financialReportView...p;id=80707

3. Go to page 11 which is titled Balance Sheets.

4. Total Assets are  $13,596,175  up  2400%  from last year.

5. Total Liabilities are  $5,893,826

6. Subtract Liabilities from Assets and you have a Shareholders Equity of  $7,702,349

Now when evaluation of companies takes place, Gold and mining companies are given a
Speculative Market Value  5 to 7 times its current Shareholder Equity value.

Being conservative we use the 5 times formula.

$7,702,349 * 5  = Estimated Market Value of  $38,511,745.

Following the previous calculation of Estimated Market Value divided by O/S

$38,511,745 / 147,905,619 =  .26 estimated price per share.

Do we see why  GEAR  can be considered a very  undervalued stock ?