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

To: tonto who wrote (1687)	4/14/1999 11:32:00 AM
From: David T. Groves	Read Replies (1) \| Respond to of 1979

This is a worthy subject, I would like to get a consensus with you Tonto on what we both can find reasonable. My statement in synopsis: (1)When referring to this land in the last annual 10ksb (Nov. 6, 1998), they stated that "It is reasonably possible that a change in the estimate (of the Brazilian 708k acres) will occur in the near term" In January, they put up 3/4 of this land, that they don't need for logging, for sale at $180 an acre. $96,000,000 asking price. The management of this company has many plans and the land sale will facillitate many of them. The first statement (1) was taken directly from the 10ksb filing; I added which land in parenthesis. For the second statement (2), the info was taken from these two press releases: biz.yahoo.com biz.yahoo.com My statement in synopsis: (3)We have the LAND SALE getting closer every day, which will greatly effect the fundamentals. Taking 20% off the asking price and deducting realtor's fees and Capital gains taxes, I expect the company to clear $60 million on the deal. Add $38 million that the remaining land in Brazil and Peru( 251,000 acres, 392 sq, miles, a square 19.8 miles on a side!) should be worth, and $10 million for the sawmill, inventory, and other assets and we see the company's assets at $ 108 million. $1.33 BOOK VALUE, $.74 OF IT CASH. My third statement (3) is self explanatory, but let me go through it. From the news release we see that 3/4 of the 706,000 acres are for sale, 528,000 acres for sale. $96 million divided by 528,000 acres is $181 an acre asking price. 80% of the $181 asking price is $145 an acre or $77 million. Take off 7% for the realtor we have $71.5 million. The land was originally valued at $40 an acre on the books so you would only pay taxes on the gain of $50.3 million. 20% capital gains on that would be $10 million. Take the $10 million taxes from the $71.5 million and we are left with $61.5 million. Are you with me so far? The kicker to this is that John Hardee found a brazilian chat line and found a real estate deal in the area that the land sold for $139 per acre. IN THE BALLPARK! that post is at www3.techstocks.com Now the rest is easy they have 251,000 acres left in Brazill and Peru, this is the real prime land. Put the valuatiion of $145 an acre on that. 37 million They usually have $4-5 million in inventory waiting to be shipped. Saw mill ~ $2 million Other assets $3 million. Add $61.5 million, $37 million, $5 million, $3 million, and $2 million together and you get $108.5 million. divide by 85 million shares and you get $1.28 BOOK VALUE per share. $.72 ashare CASH Now there is my Basis and the information used to come up with it. Please feel free, Tonto, to adjust the numbers, or show us any information that you have uncovered to give us your reasoning in black and white what you think are realistic numbers. Dave