Resource Capital Gold Corp GDPEF

RE:RE:RE:Yahoo has something for RCG chart enthusiasts

[LeftBook]

I think the trading halt price is meaningless. It is an echo of tax-loss silly season. For some traders it may have made sense to sell RCG at a heavy loss to offet their capital gains.  It has no bearing on the valuation.

The bidders are not going to be looking at moving averages to value a $20M company. They aren't one going to look at the level 2 bids from 1c to 9c on the day before the halt to estimate the value.  They are not going to estimate the value by looking at a $100,000 trading day at 2c. They are not going to be looking at the 1c price of the halt.

The bidders are going to do their own valulation, their own way. All four bidders could value the company at a lower price than my back of the envelope price. They could also value it higher than my price. Some may value lower. Some may value higher. In the end it goes to the best offer and all that entails.

My back of the envelope calculation is just one estimate. 
It reflects the numbers given to us by RCG.
If those numbers are not a good estimate then the new management will almost certainly tell us why it is worth more or why it is worth less.

31.3 assets
- 18.3 liabilities
- 2.2 SISP
= 10.8M shareholder equity

shareholder value = (10.8M + 10M tax credits) = $20M


That 20M already includes a $10M discount on the tax credits.
It cuts 1/3 off the value. Is the knife to sharp or not sharp enough ?

The 20M assumes that the value of the cost over runs described by pwc offsets all added value of the gold in-situ. In other words the balance tells us the entire story.

Yeah. It would be nice if the company was valued at $40M.
That would leave $20M for the shareholders :-)

$40M
- 18.3 liabilites
- 2.2 SISP
= $20M