Good Recap from another board..............................
Posted by: fdjr13
In reply to: greenspirit who wrote msg# 56522 Date: 9/28/2006 8:38:27 PM
Post # of 102448
The Best 2 POSTS put together for quick glance at what potential we have here!!!!!!
Posted by: greenspirit
In reply to: alwaysup who wrote msg# 56515 Date:8/26/2006 9:37:51 AM
Post #of 102193
Here is the way I've put the pieces together. I believe we need to start at the beginning....
- Lofwerks renovated old buildings in the inner city and built stylish lofts. Dennis Ammerman purchased most of his supplies through Sulja Bros, mainly because of the quality of the material.
- Consultech Construction helped Dennis rebuild some of these buildings. They also used Suljabros to obtain supplies, because, they own Sulja bros.
- Dennis owed Sulja bros quite a bit of money from past building supply purchases. When you're a good customer, lines of credit can be pretty extensive when you have property as collateral.
- Naked shorts/shorts attacked Lofterks and drove the price of his stock into the dirt.
- Consultech was concerned he might not be able to pay back his loan.
- A merger idea was formed. Consultech obtained a majority of the restricted shares.
- After the merger, Consultech voted (by virtue of having more shares) to buy out Dennis's 100 million shares. 10 million dollars and probably some lofts were agreed upon.
- Sulja came public under its new ticker.
- Consultech owns Sulja. Consultech is owned by Vista International.
- Vista International and Consultech have been building structures in Dubai, Germany and Europe for a number of years.
- The construction growth in Dubai caught both Vista and Consultech by surprise. They want the work.
- Wessal, via it's subsidiary "The Red Sea Group" has been supplying material for many projects in Dubai for a number of years. Probably one of their main customers is EMAAR.
- In the past 6 months, they have been having a difficult time obtaining materials of high quality (based on numerous press reports of the area).
- Vista International also needs these materials. Especially, good quality soft wood.
- Wessal teamed up with Vista International to help Sulja bring those supplies and materials to Dubai and the surrouding area being impacted by the construction boom. Hence the 25 million dollar loan and offer to purchase 25% of Sulja's stock.
- Sulja is now putting the pieces of the supply chain in effect to maximize profits, maximize delivery time, and maximize materials needed.
- In the meantime, Sulja still has a thriving business in Canada and the U.S.
Hope this helps....
All posts are simply my opinion.
NUMBER 2
Posted by: airdale1
In reply to: MightyBossRules who wrote msg# 56598 Date: 8/26/2006 12:36:04 PM
Post #
How about this:
Why not buy into Home Depot? Why isn’t our share price moving up?
Much like the 1940’s post WWII when oil and the automobile were king, the U.S. tied up perpetual oil contracts with the Saudi’s. This ensured long-term affordable transportation for the growth of the country. Now, the situation is reversed and the Middle East is coming to North America for resources. They can’t get a government contract for product so their long-term deals for softwood are through publicly traded entities. This will help ensure the long term growth of their country.
Emaar/Wessal is smart enough to know if they need unfathomable quantities of steel, cement, wood and fixtures for their projects, they might as well make money on both ends. They will purchase as much as possible from a very reliable source, themselves. Why let someone else make all those billions on product sales when they can keep it in house. They can control their own supply lines.
Why not buy into Home Depot? They could buy 5% of the shares in the $70 billion dollar Depot for $3.5 billion. What percent return would they get if they owned less than 5% of HD? It wouldn’t be in the billions and not even close. Probably 10% a year if they are lucky. Not much upside really, this would be a very expensive and very long-term return on their investment.
What not go private and just own it outright? They would have to use much of their own money and they would get straight earnings. They have to hire and manage a system to provide materials for them. If they purchase $5 billion in materials this year from themselves as suppliers, they probably make about $1 billion in profit. A twenty percent annual return is excellent. What if there is a way to make an even greater return?
Why select a relatively small insignificant company like Sulja Brothers? They have experience, they’ve been around 25+ years, they understand logistics and have been successful. Their management is sharp enough to know the construction industry as they are making 30+% net income. They have some existing supply lines and they have a softwood export license with a nearly inexhaustible amount of timber/lumber.
Why go public with this whole thing? The key word is leverage. If they buy 25% of Sulja Brothers in the open market for say an average of .25 per share, (open market, just like they would have to do with Home Depot) it would cost them $31 million for 125 million shares. That is 1% of the cost of buying into HD.
What is the upside on income? If they nail the NASDAQ, like they claim they will at $5.00 and those $31 mil in shares are now worth $625 million. If they crack $10 per share they’re at $1.2 billion. They can probably leverage $30 million or so into a billion dollars. Why Sulja?, because they make more money this way. If they were to hit $5 per share in a year, that would be a 2000% return. The US stock market is geared toward multiples and they know how to work it.
Why isn’t our share price rising? Mother Nature says the biggest dog always eats first and the scraps go to the little guys. The big dogs are currently at the trough and eating up the bulk of the shares IMO. There are scraps that most of us will get. This little piss ant investor is very willing risk $50K for a shot at $6 million.
Yes, I think this deal is real.
AIMVHO
Airdale
investorshub.com
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