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Gold/Mining/Energy : Winzen International Inc. (WZI : CDNX) -- Ignore unavailable to you. Want to Upgrade?

To: Gulo who wrote (7)	9/30/2000 3:44:13 PM
From: Bam	Read Replies (1) \| Respond to of 15

I got some of my numbers from Prime-Vest, but more than half have been obtained through real estate agents in the Toronto area. For example, their Lot in Everett (Ontario) in which WZI has a 50% interest has an book value of less than $200,000. But given the subdivision underway (a first draft has been filed with the officials), the entire property has a market value of over $1 MM. Or take the Westway (an apartment building in Etobicoke). The book value is the purchase price ($5.3 MM) minus the accumulated depreciation (around $500 K as this is a 1999 acquisition). So lets say the book value is about $4.8 MM. The gross revenue is just over $1 MM. Current market valuations in the Toronto area put the market value at gross revenue multiplied by a number between 8 and 10. lets take 8 to be safe. That means that the market value would be the gross revenue ($1 MM) times 8, or $8MM. This is nearly double the book value. Now if they sell it at $8 MM, and repay the first mortgage of $4.3 MM, that leaves them with $3.7 MM in their pockets, for a property with a book value of $4.8 MM. That is why I feel that the market value more adequately represents the true value of the assets of a real estate company. The book value does not reflect enough data.