I purchased shares of NRPI(OTC BB - 0.50) on Friday. In this post I will explain my reasoning. NRPI had 9.7 million shares prior to a 10 for 1 reverse split that was announced last January. The company appears to have tried a share repurchase plan to restore shareholder value. When that failed the company implemented a reverse split and moved to Miami from New Orleans. Here is that pertinent information:
fast.quote.com
NEW ORLEANS--(BUSINESS WIRE)--Sept. 2, 1998--National Rehab Properties Inc. (OTC BB:NRPI) Wednesday announced the repurchase of shares. National Rehab Properties Inc. announced Wednesday that their board has approved the repurchase of up to 400,000 common shares. The timing and terms of the repurchase will be determined by management based on market conditions. National Rehab Properties Inc. said it had 9.7 million common shares.
fast.quote.com
MIAMI, Fla.--(BUSINESS WIRE)--Jan. 16, 1999--National Rehab Properties, Inc. (OTC-BB:NRPI) The Board of Directors and majority shareholders today announce a reverse stock split of company stock on a 10 to 1 basis effective at close of business January 15, 1999. As a result of the reverse split, management feels that the company will be better able to implement the Company Business Plan.
Prior to the reverse split the company's stock traded at much higher levels. Yahoo says as high as $7.70 but their chart shows the stock opening at around $2.50 post split:
quote.yahoo.com
It's my belief that the float on this stock is substantially lower than the 970,000 shares that exist post split. Nearly 290,000 shares were purchased on Friday. Even if all of those 970,000 were in the float then surely a large number of shares are now in hands looking for much higher share prices. Why?
It would appear that NRPI using their existing capital to expand into highly profitable home building along with their established home rehabilitation business. Not only that but they may be acquiring other complementary, profitable businesses, as well:
biz.yahoo.com
National Rehab Properties, Inc. Announces Acquisition Program Activity
MIAMI--(BUSINESS WIRE)--May 17, 1999--National Rehab Properties, Inc. (OTC BB:NRPI - news) has been evaluating opportunities in the Real Estate industry and related industries in Miami, Fort Lauderdale and West Palm Beach, Fla.
The company announces it is aggressively targeting several companies for acquisition and is involved in due diligence. Richard Astrom, President and CEO stated: ''This announcement is being made as these transactions will bring significant assets to NRPI as well as considerable top and bottom line growth. There can be no assurance that the acquisitions will be consummated, however, proper announcement will be made with execution of agreements.''
Announcements should be due out relatively quickly concerning these acquisitions. Also an audit of the company's businesses was underway as of April 28th. Information from that audit should be available to shareholders soon:
biz.yahoo.com
My reasons for buying NRPI?
Company appears to be profitable.
The stock has a very small float of no more than 970,000 shares.
Upcoming acquisition announcements of profitable businesses.
I believe that the company will expand into areas more exciting to new investors than home building alone.
Regards, Jeff
|
