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Microcap & Penny Stocks : Madera Int. (WOOD)
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To: Lance who wrote (3471)1/14/1999 12:28:00 PM
From: John T. Hardee  Read Replies (2) of 3693
 
A Madera day...Madera tree harvest rate can not pass the tree growth rate.This is what the Brazil Gov wants to maintain. The present current rate of trees harvested on Madera land, Madera will have more trees on the land in 30 years than they do now. (Madera can cut 16 inch dia trees, but at present it is still cutting 24 inch trees. )

The location of the saw mill is very close to the river and it is much easier and cheaper to float logs from the Gov auction house to the Madera saw mill = (volume log movement) Now a long run saw mill production schedule can be generated.... The more trees it buys will in time give Madera the ability to harvest more trees on its land for a short period of time in the future. Its like saving up points.

Madera on average has 3 mil board feet (buffer) of wood available for export. In the past, Madera exports 500,000+ per shipment (Flota Shipping Line) at a profit margin of 20%+. This = to 6 exports loads. At this rate, one could see that Madera can start and stop wood harvesting on its land making sure they are cutting trees at a greater inhouse profit.

The Madera tree harvest operation operates very slow, If you make a mistake, you got a few days to think about your next move.

This is not a strawberry harvest operation, its a slow moving business which is showing great profit, when you consider the location and the people working with Madera.
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