Repost from the raging bull board:
The Real Deal with WOOD, "MUST READ"
Maderna paid $27M for 478,000 acres. 251,000 acres was purchased for environmental usuage. This is Brazilian land, timberland. Alos, they have Peruvian land of approximately 460,000 acres. They own a lumber mill, an environmental company, and a herbal company. They have timber resouces of billions of dollars and their stock is worth less than companies in bankruptcy's going through liquidation. What's up.
Lets look at all the alternatives to this company. It was taken over by a family when it was trading in the $25 range that owned the land. They obviously in the last four or five years have done a lot of the right or wrong things for differnt reasons. What could these reasons be? Facts: The current CEO and other family members sold their land for basically stock. They set up a division to help the Indians and sell statues, artifacts with fifty percent of the profit going back to the Indians. They are obviously trying to do the right things from an ecological stand point, not nessicarily from a business stand point, but yet it is a company any large company in the world would be proud to do business with (good immage). They take nice salaries, approximately $500,000 per year, close down the mill, and have no employees. Everybody is a subcontractor. The herbal business is only on the Internet with no advertising. What's the deal? It can only be one of two things or both. They love the land and the Indians, and want to help both, and really don't want to do a lumber company, or they are manipulating the stock by doing nothing. Let's explore this. If the company goes bankrupt, it's break up value is worth more today even if it traded at $.50 per share. If there is a hostle take over the CEO has a right to buy 51% of the stock. As you know when you buy stock it's like entering into a contract. The CEO must deal with the covenient of good faith and fair dealing and do every thing possible for the benefit of the company, which includes the stock holders. If not, and he is to benefit from not doing this, this is a fraud, and he cannot buy 51% of the the stock.
I believe the problem of the company is changing too many directions with no cash, and doing the wrong things. Example: You have a $5M timber mill, free and clear, sitting with no employees, but yet the company buys timber from other people (wholesalers) they are not processing, etc., etc., etc. They are trying to sell part of the land, approximately 500,000 acres for approximatley $80M cash to set up a plywood factory to do this, that, and what ever. This is the wrong approach. "TRES" (Treesource Industries), 900 employees, tenth largest producer of lumber in the United States, 12 facilities, and specializes in hard wood (does this sound familiar) for cabinets, doors, etc., currently in bankruptcy, they own no land, and have debt at 2.1(wood, as I recall is .01 which is really misleading because their assets are worth over $200M, not book value), but yet their stock in bankruptcy is worth between $.07 and $.10 per share. They obviously would love to do either a joint venture or an earn out (earn out is when you give a small down payment or trade one of your plywood factories that you are trying to sell, which WOOD is looking to buy and on each piece of wood that is processed, WOOD receives a payment)(This is a great deal for all companies because you do not have to have a large capital expenditure and all of a sudden you have $8 Billion worth of timber replentishing itself so every 14 yrs. you have regrowth. Furthermore, they can plant different lumbers for their other divisions)on a purchase of some of the land and exisiting mill. WOOD is set up to replant the forest, etc., would receive a down payment, TRES's employees could over see the mill, and ship logs, etc. to their other plants including wood chips for processing. TRES is not only a sophisticated user, ut also a distributer, no middle man. WOOD would receive conservatively $1M per month positive cash flow, net, net, net, and still own the land. I can give you thirty other companies that would make this deal tomorrow, and give up front cash, etc.
WOOD's biggest problem is the structure of what they are trying to do. Please see enclosed to refresh your memory, pertinenet other postings on Raging Bull Bulletin Board under WOOD: Post 10487, 6263, 9877, 6264, 9910, and most importantly 3977, 8846, 8875, etc.
MM-Market Makers do their job. They creat interest and volumn in a stock. People like me, who believe in the company and understand it, keep making bids at lower prices, which is good business. Example: 35 trades, 1M volumn. This company is a secret. Only us insiders are buying, which is okay, but eventually we want the word to get out. Feel free to post this letter on other boards. This is the only board I have ever read. This is the only stock I have ever bought on a penny exchange. My business is constraints and opportunity analysis for large companies doing acquisitions, and this company caught my interest. I own hundreds of thousands of shares and I know eventually I will make 50 to 100 times on my money. This company is a sleeping giant, we all know that. MM's create interest in a stock so people will look at it, evaluate it, etc. Most of them don't even know what the company does. You can not blame them for prices not going up or down, etc. WOOD has volumn, low debt, billions of dollars of reserves (so the company will be around for a long time), the management owns a lot of stock and has not sold, and if they do not do the right things the SEC and the courts will eventually throw them out or put them in jail. This stock will be trading with any kind of news, joint venture, etc., between $1 to 5 range or even $25 range it traded in the past with no risk of losing money. Every time the market drops I buy more stock instead of playing around with all these other using, manipulating other companies with no assets, who are trying to re-invent the wheel.
Let me tell you about another company, AQCI (Aquatic Cellulose). They own a barge with a camera and just published a letter about they are going to pick up sunken logs dropped by other companies, no big assets, etc., and Friday their stock jumped to almost $1. They have no mill, they don't own the land, they don't have a herbal company, an environmental company, and eventually you can only pick up so many logs, but they do have PR. We, as investors/company owners,can do things to help Madara be recognized, such as postings on bulletin boards, etc., write a letter to one of the other hundred companies like TRES, etc. I have done nothing but write this letter, my first and last posting. Example: TRES Industries, fax (503) 245-7995, Attn: Robert W. Lockwood, CEO, "I am familiar with the operation of your company, would you be interested in a joint venture? or an earn out? or a trade? with one of the factories you were trying to sell to immediately take over and existing lumber mill of the finest hard woods in the world, etc., etc., blah, blah. If so, please call the CEO of Madara with fax number, blah, blah, blah." Send one of these letters to all of the companies. In other words, stir the pot. I do not plan on doing this. If some one else, if you read all the other postings, that I have reference above, could do this. You can find all the other companies in the same field under industry on the Internet. In the past I would receive payment for doing these types of things as a consultant. Madara would never pay me any stock, etc. for doing this. I haven't even talked about their herbal division, which could be very important if they were to wholesale directly to GNC or another end retailer. I am still buying stock. I understand the technical end of the market, as well as aspects of the company. I honestly believe what the current management is doing is for the good of the land and the tribes, and with no cash flow the stock is depressed, which is not the big picture.
Anyway, I have not proof read this letter. I just typed it as I though about it. Don't sell your stock. If you can help the company, do. Quite possibly some one should write a letter to the CEO of WOOD and explain to him that structure, long term of a sale is more valuable than having cash. Cash is at today's value, where inventory is at tomorrow's value, and that WOOD, at this point, could position themself as they have, to help the forest, help the people, and guarantee these effects forever with the proper structure with an end user of the product they have.
I'll see you guys at the bank.
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