From the news announcement:
The plants[Ten of them], costing approximately $500,000 each, will be used by Eagle and its joint venture partners to help meet previously announced commitments to furnish the patented IMSI® Insulated Reinforced Masonry System in international building markets including Asia, Latin America, Europe, and Africa.
My $0.02:
As I recall, those plants get paid off after about 6 months use. So about a year out, just based on those plants, we are looking at a minimum book value of $5 million, or about $2.50 share. Also, the company acquired about $4 million in land for a U.S. (Utah?) project. That's $9 million divided by less than 2 million shares = about $4.50 per share book value one year out. That doesn't include other assets nor does it include accumulated cash from all the free cash flow that will be generated.
News Release:
"These projects taken together should generate profits to CT India and GWBS of approximately $6,200,000 over a two-year period. As Eagle has acquired, or has contracts to acquire, a controlling interest in these joint ventures, profits to Eagle should approximate $1,600,000 per year, approximately $.80 per share (currently outstanding 1,997,918 common shares), for the next two years."
So the stock at $2 is at roughly a PE of 2.5!
Also a huge plus, the company is fully reporting unlike most bb stocks so you can have confidence in the numbers being thrown out by the company. Hey, the company is in UTAH. Probably got some Mormons on the board. :-)
Alex |
