Coretec Group Inc (QB) (CRTG) Quote

“The global automotive camera market is projected to grow from USD 8.81 billion in 2023 to USD 18.18 billion by 2030. Core Optics is strategically positioned to capitalize on this growth and has already established a strong foothold in the expanding industry.”

https://thecoretecgroup.com/press-releases/the-coretec-group-completes-share-exchange-agreement-with-core-optics/

The forecast growth of the compact camera module calibration industry is expected to be significant, with estimates suggesting a compound annual growth rate (CAGR) of 10.2% from 2024 to 2029 ¹. Another forecast suggests a CAGR of 11.96% during the same period, with the market expected to reach $145.99 billion by 2030 ². The growth is driven by increasing demand for devices such as cameras, tablets, and smartphones, as well as advancements in automotive and healthcare technologies ³. The market size is projected to grow from $43.49 billion in 2024 to $102.03 billion by 2035, representing a CAGR of 8.061% 4. The compact camera module market is evaluated at $37.825 billion for 2022, growing at a CAGR of 13.56% to reach $92.145 billion by 2029 5.

Lots of different projections out there

https://www.maximizemarketresearch.com/market-report/global-compact-camera-module-market/35726/

Test Pilot
I’ve researched articles on forecast for modular cameras. They’re saying 10-11% between 2024-2031. That seems to be a small percentage in that market. So how’s Core Optic going to double their revenue next year? Am I missing something?…….

Companies generally don't institute a dividend until they've reached a stage of very mature growth, and they have ample, recurring cash flow to cover that obligation. As long as a company is in their growth phase they are pouring their profit back into investments like continuing/expanding R&D, or capital assets that increase production capacity, increase quality, or decrease continuing O&M. CRTG is a very long way from paying any sort of dividend, but maybe someday.

Companies pay dividends for several reasons:

1. *Shareholder return*: Dividends provide a return on investment to shareholders, rewarding them for their ownership and loyalty.
2. *Signaling financial health*: Paying dividends signals to investors that the company is financially stable and generating sufficient cash flow.
3. *Attracting investors*: Dividend payments can attract investors seeking regular income, such as retirees or income-focused funds.
4. *Encouraging long-term ownership*: Dividends incentivize shareholders to hold onto their shares, reducing turnover and promoting long-term ownership.
5. *Tax efficiency*: In some cases, paying dividends can be more tax-efficient than retaining earnings, as shareholders can benefit from lower tax rates on dividend income.
6. *Reducing cash reserves*: Distributing excess cash as dividends can help companies maintain an optimal cash balance and avoid holding too much cash.
7. *Meeting investor expectations*: Companies may pay dividends to meet investor expectations and maintain a consistent dividend policy.
8. *Industry norms*: Companies may pay dividends to conform to industry standards or peer group practices.
9. *Share price support*: Dividend payments can help support the share price, as investors may view the dividend yield as a relatively stable source of return.
10. *Balancing growth and income*: Companies may pay dividends to balance their focus on growth initiatives with providing income to shareholders.

By paying dividends, companies can demonstrate their commitment to sharing profits with shareholders, supporting their share price, and attracting long-term investors.

General question - What would motivate CRTG or any company to pay dividends?

In a reverse merger situation, the departing CEO may be able to opt for a cash settlement for services rendered instead of shares of stock, especially if the company is out of money. This is often negotiated as part of the merger agreement or separation agreement.

Here are some possible scenarios:

1. *Cash payment*: The departing CEO may receive a cash payment for their services, which could be a lump sum or a series of payments.
2. *Earnout provision*: The CEO may receive a cash payment based on the performance of the merged company, tied to specific milestones or targets.
3. *Conversion of debt*: If the CEO has outstanding loans or debts to the company, they may be converted into cash as part of the merger agreement.
4. *Equity-to-cash swap*: The CEO may exchange their equity shares for a cash payment, potentially based on a predetermined valuation.

However, it's essential to note that:

- The company's financial situation and obligations will impact the feasibility of a cash settlement.
- The merger agreement and separation agreement will dictate the terms of the CEO's departure, including any compensation or settlement.
- Tax implications and legal considerations may influence the structure of the settlement..

He could have opted for cash over profit percentage option...

I will contend he had no choice. From the preliminary numbers given by Core Optics they were nearly cashless. Coretec had to run out of cash months ago. $37,500 is a large cost for this company and would be a significant drain on reserves. It was take it or leave it in my opinion.

Yeah, I’m sure he would have made other arrangements if he was not confident in the future of CRTG

Kapper would not have taken shares if he thought they were crap - Period Full Stop! He sees a future for this company and he's been under the hood and kicked the tires more than everyone on this forum COMBINED.

There are lots of filings today.
https://investors.thecoretecgroup.com/financials/sec-filings
EDGAR Entity Landing Page (sec.gov)
https://www.sec.gov/edgar/browse/?CIK=1375195&owner=exclude

According to the Share Exchange Agreement dated March 06, 2024, 8-K, he is also restricted from selling for a year after the closing date.

Quikshft,

I think I posted Kappers acquired the shares. However, I would think that if he had wanted to be payed $37500 it could have been arranged. I still see his Form 4 filing as a bullish signal

I realize we are all just guesstimating what the future holds for CRTG. However I can’t resist putting forward the general concept of what may come to pass.
"ChatGPT - To evaluate whether buying a stock at one cent per share is a good idea, consider the following factors:
1. Market Capitalization:
Market capitalization is calculated by multiplying the current share price by the total number of shares outstanding.
For this company: Market Capitalization = 0.01?(price per share)×2.6?billion?(shares) = 26million dollars
2. Sales to Market Cap Ratio:
This ratio helps assess how much the market values the company's sales. In this case:
Sales to Market Cap Ratio = 26million dollars/16million dollars = 0.615"

With a current share price of $0.61, the company is closer to meeting the Nasdaq's minimum bid price requirement of $4.00 per share. To determine a reasonable reverse split ratio, let's consider the following:

1. Nasdaq listing requirements: The minimum bid price for initial listing is $4.00 per share.
2. Current share price: $0.61
3. Desired share price after reverse split: $4.00 (to meet Nasdaq requirements)

To achieve the desired share price, we can calculate the reverse split ratio as follows:

Current share price: $0.61
Desired share price: $4.00
Reverse split ratio: $4.00 ÷ $0.61 ˜ 6.56:1

Since you can't split shares fractionally, we round up to the nearest whole number to ensure the post-split share price meets the Nasdaq requirement. A reasonable reverse split ratio would be:

7:1 or 8:1:

- 371.43 million shares outstanding (2.6 billion / 7)
- 325 million shares outstanding (2.6 billion / 8)

You asked me in your earlier post why I thought there would not be an RS ratio of 100 to 1. Now your posting "I don't see how any of those points you make would impact CRTG's decision on whether or not to enact a RS". I do not expect an RS within the next 5 months since the shares that were recently issued are locked out until February 2025. There is potential for an RS in order to meet listing requirements on a senior exchange after February 2025.I just don't see the ratio of 100 to 1 as necessary to do so.

You asked "Do they issue more shares? Do they try to borrow? How do you believe they raise capital? Do you believe their revenue and profits continue to grow without expenditure for growth?"

I believe the company is profitable, operates in a growing industry, and has a reasonable P/E ratio. Especially, if you believe in the growth potential of the compact camera module test equipment market.

ChatGPT - To evaluate whether buying a stock at one cent per share is a good idea, consider the following factors:
1. Market Capitalization:
Market capitalization is calculated by multiplying the current share price by the total number of shares outstanding.
For this company: Market Capitalization = 0.01?(price per share)×2.6?billion?(shares) = 26million dollars
2. Sales to Market Cap Ratio:
This ratio helps assess how much the market values the company's sales. In this case:
Sales to Market Cap Ratio = 26million dollars/16million dollars = 0.615






I recently ordered Jacques D Kahn new book (Value Investing Unlock Secrets of Long-Term Wealth Creation.)
I believe there is credence to the Discounted cash flow (DCF) analysis, which finds the present value of expected future cash flows using a discount rate. Investors can use the present value of money to determine whether the future cash flows of an investment or project are greater than the value of the initial investment. "In other words, is the money this investment is likely to generate in the future higher than what will be invested right now?"
If it is, the investment will be profitable and is worth considering.

Guys I see some discussion about Kappers "buying" 37.5 million shares. Read the form 4, he was given those shares in lieu of 37.5 thousand dollars in pay he was owed. Not entirely a positive thing.

I don't see how any of those points you make would impact CRTG's decision on whether or not to enact a RS. At some point, they will need capital to grow. Do they issue more shares? Do they try to borrow? How do you believe they raise capital? Do you believe their revenue and profits continue to grow without expenditure for growth?

1.The company is profitable with, year over year aggregate Revenue projections of 100%
2. Operates in a growing industry and has a reasonable P/E ratio.
3. If you believe in the growth potential of the compact camera module test equipment market, investing at one cent per share should be a good opportunity.

Don't see the need for 100 to 1 ratio RS

I'm curious what your rationale is, Driver. Why do you highly doubt that the leadership team would execute a 100 to 1 RS? What would the downside of that be to the new company management?

Pegs1,

I highly doubt a potential RS would have a 100 to 1 ratio. The new CRTG has forecasted 8 million in aggregate revenue for this fiscal year and 16 million in 2025, which is 100% year over year growth. The 3DIcon RS were high because they had no revenue, so in order to stay solvent they had to do a several High ratio RS

You can bet there’ll be a much higher ratio for the r/s. It wouldn’t surprise me if it’s 100:1 or more……Just look at 3Dicons massive ratio of 100:1 with their toxic financing. & diluted stock……

At what point does no communication with shareholders, but owners, insiders and board continuing to buy/sell become some form of insider trading.?

Yeah, 2.6 billion is just the multiplier used to figure a market cap. With an RS of 10 for 1 the OS becomes 260 million, but you still end up with a 26 million market cap when all the figuring is done so the AS is somewhat irrelevant to this calculation. Greater concern is that the preferred C shares now contain 230 common shares as was disclosed with the announcement of the deal close. Those previously contained 150 common shares, so fully diluted that is another 800 million shares added to the 2.6 billion we’ve been estimating, or 3.4 billion OS. Not sure why they snuck that in last second, but in my best Roy Scheider, “We’re going to need a bigger RS”.

Also a bit concerned about the lack of updates. Next week we will have burned through an entire month of the six month lock down period with nothing. Not sure how long we go before it becomes apparent that they are simply running out the clock on the lock down so that when good news comes (if there is any) management can participate in the selling too. An RS before the lockdown ends would be additional evidence this is what’s happening.

The 20% would be cheap now to take the company private, especially if the Endurion battery technology becomes as good as they say.

I think we get that, but we are just using the information we have and proven formulas that at least gives us some idea of what the company could be worth. Looking forward to seeing the accurate “Data” when it becomes available

I know you are thinking worst case scenario with the 2.6 billion OS count. However, the AS count is still 1.5 billion and it wouldn’t surprise me if CRTG would RS to stay at the 1.5 billion AS limit. Don’t know what the RS ratio would be, but let’s guesstimate 10 to 1 and the pps goes to .10, so the OS goes to 260 million. Now we see .10 x 260 million = 26 million market cap.
26 million/16 million = $1.625

When all the financial data needed to find the value of the stock today . Just for starters the Intrinsic Value Determination which cant be done by the experts i asked about CRTG said because of of a lack of ALL the data needed to calculate just a companies intrinsic value which would consider cash flows , growth prospects and risks and compare this to the market price today just cant be done with a lack of many factors that go into these calculations . I showed them the calculations here and found out they were not accurate

This little exercise seems to suggest that a purchase at one cent might be fair. Looks like we are going to get there. Note that the numbers I used are PROJECTIONS for 2025, so this is quite forward looking.
Quikshft - If a certain company has sales of 16 million dollars and 2.6 billion shares outstanding, should I buy their stock at one cent per share?

ChatGPT - To evaluate whether buying a stock at one cent per share is a good idea, consider the following factors:
1. Market Capitalization:
Market capitalization is calculated by multiplying the current share price by the total number of shares outstanding.
For this company: Market Capitalization = 0.01?(price per share)×2.6?billion?(shares) = 26million dollars
2. Sales to Market Cap Ratio:
This ratio helps assess how much the market values the company's sales. In this case:
Sales to Market Cap Ratio = 26million dollars/16million dollars = 0.615
This ratio is relatively low, meaning the company is valued at about 0.615 times its annual sales. For comparison, the price-to-sales (P/S) ratio for many companies typically ranges from 1 to 2 or higher, depending on the industry.
3. Profitability:
Sales alone don't provide the complete picture. It's essential to consider whether the company is profitable. If it's losing money, even a low price might not be attractive.
4. Growth Potential:
Consider the company's growth prospects. If it has high growth potential, a low current valuation might be an opportunity. If the company is stagnant or shrinking, the stock might not be a good investment.
5. Other Financial Metrics:
Look at the company's debt, cash flow, and earnings to get a more comprehensive view.
6. Liquidity and Trading Volume:
Penny stocks often have low liquidity, meaning it might be challenging to sell your shares later without impacting the price.
Conclusion:
Buying at one cent per share could be appealing if you believe in the company's growth potential and if it has strong financials. However, investing in penny stocks can be risky, so it's crucial to thoroughly research the company before deciding.

Quikshft - The one other metric known is that the company made about one million dollars out of the sales of 16 million. Among other things, they are a provider of compact camera module test equipment which is a growing sector.

ChatGPT - Given that the company made $1 million in profit from $16 million in sales, here's how to consider the investment:
1. Profitability:
The company's profit margin is:
Profit Margin = 1?million/16?million = 0.0625 or 6.25%
This shows that the company is profitable with a reasonable margin, which is a positive sign.
2. Growth Potential:
Being in a growing sector like compact camera module test equipment is promising. Growth industries often provide opportunities for companies to expand their market share and improve profitability.
3. Valuation Consideration:
With a market capitalization of $26 million and a net income of $1 million, the company's Price-to-Earnings (P/E) ratio is:
P/E Ratio = 26?million/1?million = 26
A P/E ratio of 26 is reasonable for a company in a growing sector, though it suggests that the market expects continued growth.
Conclusion:
The company is profitable, operates in a growing industry, and has a reasonable P/E ratio. If you believe in the growth potential of the compact camera module test equipment market, investing at one cent per share could be a good opportunity. However, as with any investment, especially in penny stocks, it's important to carefully weigh the risks and consider your overall investment strategy.

Kappers elected to acquire more at .01 which is a higher pps the the shares he received prior to the closing date of the agreement. He’s definitely a bullish insider on CRTG

https://investors.thecoretecgroup.com/static-files/6fb00cff-37bb-407f-83bd-dc61fe0e521d

My sentiments exactly 👍🏻

After having a small meltdown because any positive effects of the merger were bled off over the months of waiting I came to one conclusion. Selling at a loss or even breaking even is a waste. The key players are BUYING NOT SELLING! Kapper is buying millions of shares and so are others in the company. Someone can talk up a company but end of the day it's where THEY put their money. Those in the know are betting UP in the long run. That's enough for me to hold and even buy more if the price drops to an insane deal level.

Someone may have covered but 20 Aug Kapper aquired an additional 3,750,000 shares making his total to 16,147,194. I think he's all in...

Thanks for sharing Walrus,
I ordered the paperwork version

The share price keeps dropping and dropping! Management needs to give us NEWS!

According to experts in determining Intrinsic valuations and some I've talked to what we need all the current data , financial info etc to come out and we wouldn't get the next 10 q for a while. They told me they like to have 12 months of financials at least. I at least ordered that book from Amazon. I also want to use the designated cash flow ( DCF) to help project future valuation as well as know the value today based on fresh financials as they seem to cracking out a lot of back ordered machines fairly quickly and getting more orders to follow. I like the fact that after only becoming a company July 19 , 2023 they were able to make 880 thousand and expected 8 million this year and at least double to 16 million next year . Kappers did say they had good profit margins and that was after they spend like 900 K retooling machines for the auto industry and are also spending now on more equipment and hiring so that costs as well . After they get set up so to speak profit margins / cash flows will increase . I think CRTG is way under valued even today but it's going to take the market time to realize that and the future should look very good . We need financials though for anyone to do accurate types of evaluations according to the people who do this for a living. Theres just not enough out there yet.

Walrus,

I simply asked the Meta AI if the statement you posted earlier was credible.

“ Is this statement credible?
Jacques D Kahn new book Value Investing Unlock Secrets of Long Term Wealth Creation . I haven't read it yet. Earning are not really important but it's the Discounted Cash Flow ( DCF) method is what's now considered most important in determining the Intrinsic Value of a company”

I don’t take the AI response as Gospel, however I still believe “aggregate revenue” which is what was reported by the company as 16 million in fiscal 2025 is still important in evaluating the overall solvency of a company. I believe this investment has tremendous potential. Especially, if the new management makes wise decisions and brings the technology triad of Endurion, CHS, and CSpace into commercialization

Kappers and team keeping shares is another positive sign. I suspect the price will go down before it goes up. Like the song says - you gotta know when to hold em and know when to fold em. I'm going to hold em.

I was simply stating that you can have big earning/ sales and zero cash flow and be underwater and that stock would be a bad investment . We see it everyday . If CRTG loses money everyday and has zero cash we are going under even if they make 16 million plus plus . It means nothing if your losing money and never make enough to stay open . Read the book and I think Al will be enlightened, Al always incomplete. In responses. If we have bad cash flow earning means nothing. The number 1 financial advisor in Oklahoma talked about this on the radio today . He's looking at cash flow has to be grown to be a good stock to buy. regardless of earnings are his exact words . But he's only mega rich . He's the best at buying undervalued stocks Maybe AI thinks he's wrong but AI is not human and is missing a few inputs. Perhaps AI should have the book to be read to it first. Earning is not number 1

I was simply stating that you can have big earning/ sales and zero cash flow and be underwater and that stock would be a bad investment . We see it everyday . If CRTG loses money everyday and has zero cash we are going under even if they make 16 million plus plus . It means nothing if your losing money and never make enough to stay open . Read the book and I think Al will be enlightened, Al always incomplete. In responses. If we have bad cash flow earning means nothing. The number 1 financial advisor in Oklahoma talked about this on the radio today . He's looking at cash flow has to be grown regauinif earnings are his exact words . But he's only mega rich . Maybe AI thinks he's wrong but AI is not human and is missing a few inputs

This is the Meta AI response to :
Jacques D Kahn new book Value Investing Unlock Secrets of Long Term Wealth Creation.
“ The statement is partially credible, but also somewhat misleading. Jacques D Kahn's book may indeed emphasize the importance of Discounted Cash Flow (DCF) analysis in determining a company's intrinsic value, which is a widely accepted and fundamental concept in finance.

However, the statement "Earnings are not really important" is an oversimplification. Earnings are still a crucial metric in evaluating a company's financial performance and health. While DCF analysis is a valuable tool for estimating intrinsic value, it relies heavily on accurate earnings forecasts and other financial data.

A more accurate representation would be:

- Earnings are important for understanding a company's current financial performance and trends.
- DCF analysis, which takes into account future cash flows and discounts them to their present value, is a widely accepted method for estimating a company's intrinsic value.

It's essential to consider both earnings and DCF analysis, along with other valuation methods, to form a comprehensive view of a company's value.

Jacques D Kahn new book Value Investing Unlock Secrets of Long Term Wealth Creation . I haven't read it yet. Earning are not really important but it's the Discounted Cash Flow ( DCF) method is what's now considered most important in determining the Intrinsic Value of a company . Cash Flow growth year after year not sales are number one in evaluating stocks and finding stocks that are undervalue and buying them below value . Lots of companies have big sales but not cash flow growth .Core Optics started early with 900 thousand plus cash but burned through it to retool the manufacturing process so the cash numbers were low as we saw after the initial investments were made. Kappers said they have had good profit margins . So now they have / had little cash but sales are going through so we don't know what their cash flows will be so there is not a way now to determine valuation . Banks don't care what your sales are they want to look at your cash amount. So key for this investment will be to see over time cash flows increase yearly and beyond strong cash flows which we don't know what they will be but should grow they need strong fundamentals like Effective Management , competitive advantages and Consistent profitability. I believe they have these and will have good profitability as well in time. Cash Flow is real and can't be faked but Earnings can be manipulated. Benjamin Graham used the old ways to determine value Buffet and other now want to know regardless of earnings they want to know cash flows and growth in cash flows year to year. We need to allow time for the market to recognize the companies true value if of coarse they show and expect strong year to year cash flow growth. Looking for cash Flow growth numbers and projections

Wholeheartedly agree 👍🏻 and another point to consider is that Kappers and Hoffman could have insisted on a cash settlement for services rendered from Core Optics LLC instead of shares of CRTG. I believe they saw the future value of the company as much greater than a cash settlement

Any positive news on Endurion battery technology will move the stock price up; we are just missing the news.

There’s so much not accounted for with this evaluation. We’re a new company with revenue and battery updates will happen at some point! Come to far to sell now! All in!!!

https://stockinvest.us/stock/CRTG

Interesting article on Coretec’s stock prediction. Noted that there has not been any insider selling of shares. There’s a list of insiders buying shares. Unless there’s a reverse split, their predictions of share price will remain at current levels in a downward trend. Their recommendation is to sell……..

Here’s another estimate on P/S ratio in the technology sector:

What is the price to sales ratio for technology industry?
“The Russell 2,000 Technology sector's price to sales ratio is higher at 2.8x, but that's still below the 2.9x P/S ratio for the S&P 500 as a whole. Incredibly, the S&P 500 Tech sector's price to sales ratio has pushed all the way up to 9.8x, which is well above its high at the peak in late 2021.Jun 20, 2024”

So, 2.8 x 16 million yields 44.8 million/1,107,432,606 billion = .0404

I prefer to use the P/S ratio of 2.8 as it makes me feel better 😎

The price-to-sales (P/S) ratio for companies in the technology sector, which includes the compact camera module calibration business, typically ranges from 0.75 to 1.5 ¹.
https://eqvista.com/price-to-sales-ratio-by-industry/

Estimate the 2025 market capitalization:
2025 revenue: $16 million
P/S ratio: 1.5
Estimated market capitalization: $16 million
x 1.5 = $24 million
4. Calculate the estimated price per share in 2025:
Estimated market capitalization: $24
million
Outstanding shares: 1,107,432,606
Estimated price per share: $24,000,000 /
1,107,432,606 = $0.022

I really hope we get some positive news on the Endurion project soon.

At least the company's market cap went from around 5 million last week to over 19 million as of today's closing, 9/4/2024.

Any news would show us some respect from the new management. For example, we're still working on the Endurion battery technology, which looks good! (The golden rule)

The otcmarkets.com website is accurate. It also gives you Real-Time Level 2 Quotes.

https://www.otcmarkets.com/stock/CRTG/quote

I'm getting conflicting data. Some sites say there are only 350 million plus outstanding shares and others list the outstanding shares as over 1 billion. I know CRTG had authorized 1.X billion shares but only released 350 million plus. Thoughts?