Does every agree with this math?  I would think you would use the fully diluted shares in such a comparison?

 

   
 
Post # of 39
BGM Holding companies Leverage Comparison.(coutesy poster "diddly squat" over on SI)....hsb

GCC.H vs LG*

*Assuming financing closing

I'm assuming for this analysis that the BGM warrants are in the money.

Leverage wise

GCC.H shares out - 14 million (not fully diluted)

LG shares out - 37.66 million (not fully diluted)

GCC.H - Last price $0.345

LG - Last price $0.05

GCC.H market cap - $4.83 million

LG market cap - $1.88 million

BGM shares owned

GCC.H - 1.8 million + 200,000 wts

LG - 1.04 million + 200,000 wts

For every 7 shares of GCC you have leverage to 1 shares of BGM

For every 30 shares of LG you have leverage to 1 shares of BGM

Current market price of GCC is valuing its BGM at $2.41

Current market price of LG is valuing its BGM at $1.52


LG would need to trade at $0.08 to be the same value as GCC currently is or GCC would have to be at $0.22 to be the same value as LG is currently. I'm assigning zero value to either companies properties, etc. It appears that at current prices LG offers better leverage to the BGM. However I need to do another analysis using fully diluted shares to determine more accurate leverage.

Not using fully diluted.....

If BGM were to go to $5.00

GCC.H's BGM holdings would be worth $0.71 per share ( 2 times current price)

LG's BGM holdings would be worth $0.16 per share (3.2 times current price)

If BGM were to go to $10.00

GCC.H's BGM holdings would be worth $1.43 (4.1 times current prices)

LG's BGM holdings would be worth $0.33 (6.6 times current prices)

I might be buying a few shares of LG.V on Monday