Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: E_K_S who wrote (52797)	11/16/2013 3:55:00 PM
From: E_K_S	of 78744

The value proposition for International Barrier Technology Inc. (IBH.V IBTGF) gets more interesting w/ confirmation of a Supply Agreement w/ LPX. It looks like this agreement accounted for the exceptional sales growth the last two quarters for IBTGF. Notice that the original agreement ends 12/2013 w/ an option to extend thru Dec 2014. From the Form 10-K for INTERNATIONAL BARRIER TECHNOLOGY INCSept 13, 2013 10K LPX is using IBTGF to produce a private label branded product that is sold under the LPX name. Now that LPX has a growing Asian market (thru the acquisition of Ainsworth Lumber Co. Ltd. (ANS.TO)), I suspect LPX will sell their private label product directly to their new Asian customers. The easiest way to accomplish this, is to just buy IBTGF using LPX shares (similar to the Ainsworth Lumber Co. Ltd. (ANS.TO) deal). Based on a 30% premium of next years earnings for IBTGF LPX could pay between $24Mln to $60Mln for the entire company which includes any/all current royalty licensing manufacturing agreement(s0 that may be in process. The sooner the cheaper LPX gets the entire business. LPX is making some strategic moves in their company and by adding IBTGF their specialty private label "value added" product to it's product line, LPX can expand their presence in the growing Asia market. As a bonus, they may/could receive the royalty licensing manufacturing agreements that IBTGF is negotiating for their branded "fire-proof" product in Russia and Europe. To me, it seems to accomplish a lot of LPX's strategic growth requirements for very little money. Time will tell if any of this happens but many of the dots do line up. EKS

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next