John, you've proven to be the MASTER OF AMAZON DUE DILIGENCE, again. This is REALLY GOOD NEWS!!! The $139 an acre figure is right there in the ballpark with the $150 an acre that I used in my previous calculations.
Sorry for this repeat, to those of you that don't like it, but for the newbies, the forgetful, and the dense. Here it is again.
Using $140 an acre, They would receive $73,920,000. After the Real Estate company got their 7%, $68,745,600. Take away 20% capital gains on the $100 an acre they made, minus realtor and closing fees, and they end up with $59,000,000 CASH
The real value of the Land that they keep will be $140 an acre for the 176,000 acres or $24,640,000.
Add $59million, $25 million and $7 million for their other assets (sawmills, etc., lumber and logs on hand. (nice thing about wood is it doesn't become out moded like tech.)) and we come to an ASSET VALUE OF $91,000,000 Take away the $1 million debt and we end up with Equity of $90,000,000 .
Divide this by 80 million shares and our equity per share is $1.125!!! $.74 of it CASH PER SHARE.
This stock is selling at about 1/10 of this projected book value. It is selling at 1/6 projected cash per share. No matter what they purchase in the line of capital expenditures, the book value will stay the same.
This company is profitable and growing, it should and will be selling at 3x book value much sooner than later. That would be 30x what it is now.
As soon as they sell the first third, we will have a better idea of the numbers, They may get their $180 an acre asking price! They may get somewhat less. But the sale is getting closer everyday!
No wonder they want to have The first shareholders meeting soon. I'd want to bask in the adulation too!
Good ballpark figures? Post your own if you disagree.
Dave |
