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Microcap & Penny Stocks : Madera Int. (WOOD) -- Ignore unavailable to you. Want to Upgrade?


To: Chinook10011 who wrote (3611)3/2/1999 12:52:00 PM
From: David T. Groves  Respond to of 3693
 
There are two natural occurrances that effect Maderas ability to ship their products. One is the rainy season and the other is hurricanes.

These are the causes of profits one quarter and loses the next that is a normal cycle at Madera. (as long as they are profitable overall)

El Niño \ La Niña have wreaked some havoc on when the rainy season is and how long it lasts. Which shifts the earnings between different quarters. It could have the devastating of stopping earnings.

For NE Brazil the rainy season is Jan-Jun. El Niño mainly affects first half.

Here is a link that discusses the Rainy season and El Niño.
met.nps.navy.mil

Shipping during peak hurricane season is not a good bet either.

In the Atlantic, Caribbean, and Gulf of Mexico, hurricane development starts in June. For the United States, the peak hurricane threat exists from mid-August to late October although the official hurricane season extends through November.

Here is a link that discusses hurricane timing.
nassauredcross.org

Rainy season: Jan-June / Hurricane season: June-November. Are you getting the picture how much 'good' time there is? Of course they can and do stock pile lumber when they can.

I think the land sale, although more mid-term will support share price short term if the earnings or web site are disappointing. Earnings are not going to be rip roaring until they receive money from the land sale for their planned capital improvements. I've been skeptical that the web site is a short term proposition. If it does work, it will need time.

I'm still glad that they have a product that is in demand, won't become obsolete, and buyers that will take all they can supply. It can only get better!

Dave



To: Chinook10011 who wrote (3611)3/2/1999 12:55:00 PM
From: John T. Hardee  Read Replies (1) | Respond to of 3693
 
It would be interesting is see this information. Madera has not published anything to support your thoughts. There is no Brazil news published about the export of wood by Company by quarter. U.S. Shipping ports are about 6 months to a year behind in posting import stats.

Brazil does have a several month rain season which does cause a problem. You can read up on this problem in your Encyclopedia.