As a CityGuru Investor this is perhaps the most important question you can ask; and one you should be asking frequently.
Most CityGuru Investors have exchanged their savings for equity, or shares in the company. Since CityGuru, Inc. has no accounting system or even basic bookkeeping necessary to provide financial reporting for individual investment accounts the only measure of how your money is performing as an investment is in knowing the share price of the stock you own in the CityGuru, Inc.
Yet, nothing has been more misunderstood—and mis-quoted—than has the price of a share of CityGuru, Inc!
For example, any share price quote you may have heard probably was based upon a vague explanation of the correlation between the amount of funding that has been raised (or will be raised) and the number of outstanding shares (according to CityGuru, Inc. corporate registration is 10,000,000). If so, do not use this as a reason to increase the funding of your CityGuru, Inc. investment. The surest way to determine a valid price for a share of CityGuru, Inc. stock is to simply apply the same basics as do public companies trading their stock on the Open Market, or stock exchanges.
Yes, it is true that CityGuru, Inc. is a “private” company, and as such, is not subject to the same regulations or methods of determining share price as are “public” companies who are governed with strict Security Exchange Commission (SEC) regulations. And yes, CityGuru, Inc. can quote whatever price they want for their shares.
But, you are contemplating or you already have traded shares in CityGuru, Inc. It is necessary to know what a share is worth.
Owning stock in a company means you own a piece—or share–of that company. How much you are willing to pay for that share depends upon the value of the company. This is vitally important to you as an investor because when the time comes that another investor wants to buy your share–the price he or she is willing to pay for it will depend upon…the value of the company; your company, CityGuru, Inc.
So, what is the value of CityGuru, Inc.? No one knows. The company has no accounting system by which to determine value; no numbers substantiated by Income Statements, Profit/Loss Statements, Balance Sheets, or even Shareholder Equity. Even incoming funding is not accounted for. Without any means to substantiate and measure the business and management track record, CityGuru, Inc. cannot demonstrate its business value.
As CityGuru Investors let’s suppose we all can agree upon a share price Who will buy it from us at that price? As a private company, we don’t have the option of selling our shares to a ready-made market as do public companies. Even if we did, savvy investors are going to pay us only what they think the shares are worth (value) despite the bright visions of our Founder. Should you find another investor willing to buy your CityGuru, Inc. shares you are likely to have to compete with your own CityGuru, Inc. management who would surely want that cash as new funding rather distributing it as an investor buy-out.
As Founder, Drew Morrison, is quick to point out about the Future–there are always possibilities of “going IPO” or a merger/acquisition by another more powerful company, etc. But that is pure supposition and be may many more years before it is possible. That will still depend upon CityGuru, Inc. being able to validate its value to the Open Marketplace with a sound financial track record that is only possible if CityGuru, Inc. establishes any capability for auditable financial reporting.
So, how much is a share of our CityGuru, Inc. stock worth? Really worth? With no objective evidence of value or even a market of potential buyers, we cannot substantiate a share price more than $0.00 per share.
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[showhide type=”hottip2″ more_text=”- How Share Price is Calculated: Price of a share (stock) of a publicly traded company is based upon one of two ways that VALUE is determined for that stock.” less_text=”- How Share Price is Calculated: Price of a share (stock) of a publicly traded company is based upon one of two ways that VALUE is determined for that stock.”]
- A. Net Asset Method (Total Assets – Total Liabilities). Basic company accounting called a BALANCE SHEET is required to use this method. CityGuru, Inc. offers no such accounting or financial records.
- B. Earning Capacity Method (Expected Earning Rate and Expected Profit). Basic company accounting called an INCOME STATEMENT and PROFIT/LOSS STATEMENT is required. CityGuru, Inc. offers no such accounting or financial records.
For a better understanding of how value of share (and price on your stock) is determined visit:
http://www.svtuition.org/2009/03/how-to-calculate-value-of-share.html
[/showhide]
When I discussed this with Drew Morrison, he explained that our CityGuru Shares are roughly $0.45 per share. He said this is based upon an asset value of $1,000,000 and the growing number of key partnerships which is increasing CityGuru’s revenue base. I’m not an expert at these things–but what he said seems to make sense. Why are you saying our shares are only worth $0.00 per share????.
$1,000,000 in assets??? What assets? At last count, CityGuru hosts VIP social events. However, if CityGuru can produce a simple Balance Sheet from its own accounting, that would asnwer the question regarding “assets”. “Revenue Base”? What revenue base–what Morrison earns off the CityGuru events to pay his rent? An Income Statement and Profit/Loss Statement might answer a few questions! “Key Partnerships”? In future posts, you will learn about what has become of some of these “key partnerships”; even CityGuru’s alliance with local charities, such as the Susan G. Komen Foundation which at best: are suspect! Look…we aren’t trying to pick on Drew Morrison; we are trying to hold him accountable as the Founder of our company. If he cannot be held accountable to us–the shareholders–then CityGuru will never be accountable to Wall Street/SEC…and support a Share Price any higher than $0.00!
Anonymous: In my experience, Drew says a lot of things. Asset value of 1 Mil? Increased revenue base? What is the revenue? What assets? Someone else mocking wrote about selling an investor in Cityguru a bridge. Not much of a joke if you take Drew at this word. “I am worth ten million dollars.” Makes sense because I told you? What if I told you I made all of my money in real estate investments, but had no proof of actually making the money, would you believe me? Maybe so. If you believe Drew, by all means give him all of your money and you will be rich. Besides, stock is only worth what someone will pay. I am sure a number of investors in Cityguru will be happy to sell you their stock for far less than .45 a share. If interested, let me know.
We have to agree with your statement that stock–any stock–is only as good as the buyer for that stock. That leaves you in a peculiar situation if no one wants the stock! However, one never knows: offer your stock for HALF price–$0.23 share–and see if someone bites. Broker the sale yourself to prevent CityGuru mistaking it as new funding.
I have no reason not to believe Drew since he works the business everyday. He should know what the price of stock is and if he says $0.45/share than it probably is! For anyone who wants to get into this investment, I will sell my stock for $0.15/share on a cash only, first come; first serve basis. Any takers? –Wealthy One
Wealthy One, we should hire you for CityGuru’s Sales! We’ll make YOU a deal: if you find a buyer for your shares at $0.15/share, we will sell our shares to you for $0.05/share. You can turn a $0.10/share profit–heck, we bet you can get any CityGuru Shareholder to sell you their shares for the same price (cash in hand of course, no promises and no “re-investment”).
Wealthy One. Let me get this straight: You believe Drew because he works the business every day and he told you. (Nothing to back it up, he told you. By the way, what is the business and how much has it made? Oh, I know, details that get in the way of the story.) You want to sell your stock for half of what Drew says it is worth? Why would you lose money if you believe Drew? By all means keep the shares and buy everyone else’s shares. Drew told you the company was going to be big and make big $$$ for the investors. Pretty sure Drew will sell you more shares.
Wealthy One. We stand by our offer to sell you ALL of our shares for $0.05–and if you’re in the market–we can probably find a few others to sell you all of theirs as well.
The last reply makes a good point: Why are you offering to sell your shares at half price if Drew says they are worth much more???
Mr. Morrison is a liar, cheater and scammer. My beloved mother met this Morrison at one of his so called fund raiser. After spending an hour or so at the function and receiving numerous phone calls from Morrison, unbeknownst to any of our family our mother withdrew all of her savings and “invested” with this guy. It took my mother many years on a school bus drivers wage to save just under $8,000. Now the money is gone and so is my mother. When she learned she had been taken by this theif, it was to much. She passed away within 1 month and one week. Shame on you Drew Morrison I hope you burn in hell.
I have known Drew for a long time, and I know what a real go-getter he is! But the more I read the garbage on this website–in particularly these comments–the more I want to slap all of you and to tell you to wake up and stop whining! Just because of 2 or 3 Whiners, the rest of you are complaining rather than helping Drew to get on with what you paid him to do! All this complaining and whining does it to distract him from doing his job!
So, let me tell you the facts of life so that you can get your act together as investors and help us rather than work against us. Let’s start with talking turkey:
Yes, you will have to wait a while before you see any return on your money. But that is the nature of investing! So what if we can’t see the end in sight–doesn’t mean it’s not there!
No, you can’t have your money back. It was spent the day you wired it in! You have to spend money to make money.
No, there are no financials or accounting–and you’re not going to see any. We are a startup company not an accounting firm. If you want the added costs of accounting; then send more money so that CityGuru can hire an accountant!
Yes, Drew is young and he’s learning as he goes along but can any of you do better?
Yes, there are risks–BIG risks; LOTS of risk and part of taking those risks is in YOU accepting the fact that you are going to be in the dark for a long time. You can’t expect Drew to hold your hand and account for every penny he spends!
No, Drew does NOT have to account for what he does with your money. You entrusted him to use it as wisely as he can in building this investment. It’s too late to worry about that!
No, CityGuru stock may be worthless…for NOW…but don’t you think investors in the early days of Google also felt like they were holding worthless Stock (Guess what–in the beginning–they were!)
No, we can’t worry about dotting every “i” and crossing every “t” when it comes ot all the rules and regulations. Drew is an entrepreneur and he has to push the limits. Don’t saddle him with a lot of old school rules that no longer apply.
If you were really as smart of an investor as you think you are you would be buying out all the stock of the other whining investors and get on board to help Drew kick-start this company!
Grow up people. This is business!
What a pile of horse S***. He does not have to account for invested funds? Really? He can spend what he wants and no books or records? Telling everyone else to “grow up” and “this is business” is crap. Business is not run as a pick the pocket of the “investors.” Crossing every “i”? Shit, this guy doesn’t write anything down. Okay, Mr. big shot this investment is going to be big, name one, any one, other big company without books or records. He is not paying taxes? Must not be because he has no records. Guess you just have to trust him, right? Jump suit for this guy, and you, I hope. When this house of cards fall those that push this worthless company will pay a price.
Please pass this question onto the brightest person in the CityGuru organization, please.
Drew Morrison told me CityGuru is valued at $1,000,000 Million, rendering the shares at $0.10/each. He expects a Buyout or IPO soon (the reason I should jump in with my $50,000 which could grow to $500,000 with shares at $1.00/each.
QUESTION: How does one determine the value of the company–and its share price–if when has no accounting or financial tracking system in place since the inception of CityGuru? Hmmmm….Drew Morrison could never answer that question…is there anyone else there that understands my question?
IF none of you are really sure of how a company is valued and share price determined…you really should cease collecting funds from investors and start establishing an Accounting System! Drew Morrison is your mouth piece, right? Put him in the corner until you know what you’re doing and what you’re talking about.
…Just saying…
These statements were made in error. Collectively, the CityGuru Shareholders solidly agree with the need for accounting and financial reporting capabilities.
We have passed your comments onto Founder Drew Morrison.