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Microcap & Penny Stocks : Madera International - Symbol WOOD -- Ignore unavailable to you. Want to Upgrade?

To: MTDEX who wrote (766)	1/24/1999 6:39:00 PM
From: Proletariat	Respond to of 1979

I do buy your theory, M, and let me expound on this specific situation with WOOD: If the 96million cash infusion from timberland sale is realistic... just for what it's worth.... the entire infrastructure of current equipment for Madera(Sawmill-Brazil) is $2,395,000. The cash position of the company (as of annual report, 3/31/98)was $47,186. Total Accounts receivable were only $3,041,123. Total Inventory was only $3,121,987. My point is this...if we were only talking about SEVERAL MILLION DOLLARS from this land sale, I would say, ok, nice little capital infusion. But with a company like MADERA with only $4.5 million in sales in '98, up from only $1.9million in sales from '97....THIS IS BEYOND THE REALM OF just asking if it will result in an increase in earnings. We're talking about the equivalent of $1.33 per share in cash for a company that only made net of $.013 per share last fiscal year. And remember, this possible cash infusion DOES NOT DILUTE THE SHARE BASE and apparently does not deter the company from its already laid out business plan (WEBSITE sales, etc.) If the company put it in the bank and earned 5% in a lousy CD it WILL RESULT IN INCREASED EARNINGS. BIG EARNINGS relative to where WOOD is now. Can anybody out there hear me?????

To: MTDEX who wrote (766)	1/24/1999 7:02:00 PM
From: Proletariat	Read Replies (2) \| Respond to of 1979

M, as a followup to my earlier response to your question, "Will the proposed sales actually happen? If so, how will it result in an increase in earnings power, and how large is that increase likely to be?.... Back to my scenario(ridiculous, but useful for these purposes) where MADERA sells the land for $96,000,000, does nothing other than place it in a bank CD paying 5%....yields $4,800,000 in PRE TAX PROFITS, pick your tax rate.... 25%, I don't know....leaves $3,600,000 net. They only made $1,137,670 net income in '98. The answer is, YES, I THINK IT WOULD MEAN AN INCREASE IN EARNINGS. WHAT if they actually use the money in a business savvy way and deploy it well. Surely they could do better than a 5% pre tax CD. Look, I know it's a silly scenario, but isn't there something to this????? And lastly, while "BOOK VALUE DOESN"T" DRIVE STOCK PRICE", don't kid yourself, any company that "tripled" it's book value with one transaction, as is possible here, would see a dramatic increase in its stock market price.