Patrick, you have to decide for yourself off course what your willing to believe. I'm going through the same process every time I speak to a company and in this case, when I speak with Jim Bond. Till now, although I've had times, when I didn't believe in the story anymore, I'm a strong believer in this story. And I had some real doubts this summer, believe me. However, since I have knowledge of the 'full' story, I've become much more convinced of the profit-road Bomax is taking.
This is just my opinion. Now the facts. If Bomax was expecting a EPS 0f C$0.78, when in full production, they had to produce 2500 cu metre per month. I said this monday to Jim Bond and he admitted, that he had not AND COULD NOT give the full details at this moment, because this would bring him in trouble with the VSE. But he assured me of the fact, that this EPS projection was based on the fully diluted number of shares (if I remember well, 22,500,000, but you can find this in an earlier message of me). Why are they going to make more profits? Not because of extra production, that's clear. No, they are planning another production process in which they do not sell the rough product (granite blocks in cu metre), but the endproduct (cut-and-polished granite in squarre metres). They actually have already an order for this, as I've said before. This cut-and-polished granite is about 2 cm thick and has a very high profitmargin. So this gives extra profitability at both sides: you sell in fact less granite for a much higher price. Or, when you produce 1000 cu metre per month, you have much more to sell in squarre metres then in cu metres. And if this gives you also more earnings, you will understand, that we have a perfect business situation here. If you want an example of a company, who is doing exactly the same with gemstones, take a look at Vantage Enterprise Corporation (VEC-VC). They also cut-and-polish their stones to bring it as an endproduct to the market instead of just dumping the rough stones. And it is giving them a very high profit. Look at their chart! I think, that patient Bomax-shareholders will see an even greater reward within a year (relatively), when the company can manage the project off course. But that is something we will have to follow very closely. At this moment, you can't say anything about that. The acquisition is just a fact and the company-building has just started.
I hope, you get the point and you have an answer to your questions. I'm sorry, that I cannot give you more details. But I'm sure, that the company will soon release their plans and start promoting the company.
The Dutchman
The Sharp Razor of Ockham |
