I know we were, John. But the site is very close. I hope they are able to handle all the orders!
I see by Madera's PR today that they are only selling 3/4 of their land. That comes out to 528,000 acres at an asking price of $180 an acre. So that's about 4.5 times the ascribed value.
$180 an acre doesn't seem like much. Usually a real estate broker will try to get you to sell somewhere in the ballpark for a faster sale. I would try to tack on 20% just on the principle that when I buy real estate I offer 20% less. The brokers never happy but then again I've been surprised an got close to my ask.
Anyway, if they got 20% less they would get $150 an acre. Each third (176,000 acres) of what they are selling would bring in ~27 million.
$81 million in all. 10%(probably less) for the broker plus Capital Gains, would bring the proceeds down to about $55 million. Of course they would still retain 176,000 acres, which would have a proven real base value of $27 million. TOTAL cash and proven value real estate: $82 MILLION. $1 A SHARE CASH AND PROVEN VALUE REAL ESTATE.
by the way Janice Shell, you mentioned the market not being wrong in valuation, my charting program shows the 130 day moving average at $.062. We are selling for almost 3x that amount. You and I both know that nothing goes straight up. This stock is moving normally for a stock on the way up.
When you came here you thought it was the stupid web site that was moving this stock, I'm sure. Look at the whole company. The web site is minor. I'm sure right now you think they don't have the land or it's not worth $150 an acre.
The last annual report was late because the auditors were checking the properties. It's in their nt10k that they filed last year. An excerpt:
Registrant's Chief Financial Officer, Regina Fernandez, gave birth to a baby girl two weeks prior to the completion of the audit by Registrant's auditors. Although most of the work was completed, certain pertinent information relating to values of properties requested by the auditors that must be obtained from Brazil and Peru could not be completed until Mrs. Fernandez is capable of completing the work and communicating with those supplying the data.
What will happen when that first third of property being sold comes in at $150 an acre? Will this stock be selling at a fraction of the $1 real book value or a multiple?
Will it come in at $150 an acre? I don't know. I know from the fortune article that you found a company that was inflating land prices Janice. Perhaps you can tell us what an acre of rain forest should sell for?
Dave
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