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

To: Alastair McIntosh who wrote (1697)	4/14/1999 7:56:00 PM
From: Proletariat	Respond to of 1979

I wonder how many ACCOUNTANTS made good calls on AOL!

To: Alastair McIntosh who wrote (1697)	4/14/1999 9:04:00 PM
From: David T. Groves	Respond to of 1979

Hi Alister, Good question! Here's the answer! It is the first paragraph in the report so it could escape anyone's notice Page 1 PART I ITEM 1. DESCRIPTION OF BUSINESS 1. SUMMARY In July 1994, Registrant entered into an agreement with Ramiro Fernandez-Moris and his family to acquire assets held by them in the family owned corporation Forest and Environmental Resources of the Amazon, Inc. ("FEROA"). These assets consist of 478,000 acres of freely owned timber producing property in Brazil, as well as substantial acreage in Bolivia and Peru that are long term concessions. The value of these properties is based upon an independent third party appraisal supplied as part of the due diligence procedure. The value used is $27,000,000. Now take your 251,000 acres at $414,000 and the 478,000 acres at $27,000,000, add the money and add the acreage, divide acres into Dollars and you will get dollars per acre. ~ $40 Dave

To: Alastair McIntosh who wrote (1697)	4/14/1999 9:07:00 PM
From: David T. Groves	Read Replies (1) \| Respond to of 1979

Hi Alister, Good question! Here's the answer! It is the first paragraph in the report so it could escape anyone's notice Page 1 PART I ITEM 1. DESCRIPTION OF BUSINESS 1. SUMMARY In July 1994, Registrant entered into an agreement with Ramiro Fernandez-Moris and his family to acquire assets held by them in the family owned corporation Forest and Environmental Resources of the Amazon, Inc. ("FEROA"). These assets consist of 478,000 acres of freely owned timber producing property in Brazil, as well as substantial acreage in Bolivia and Peru that are long term concessions. The value of these properties is based upon an independent third party appraisal supplied as part of the due diligence procedure. The value used is $27,000,000. Now take your 251,000 acres at $414,000 and the 478,000 acres at $27,000,000, add the money and add the acreage, divide acres into Dollars and you will get dollars per acre. ~ $40 Dave

To: Alastair McIntosh who wrote (1697)	4/14/1999 9:24:00 PM
From: tonto	Respond to of 1979

Alistair, you may want to review the effects of the step up basis on assets. <s> What is filed will confuse the majority of investors who will ignore the basics behind that transaction... Alastair McIntosh on Apr 14 1999 7:41PM EST To the thread: I have been periodically lurking here for some time and I have a problem trying to understand the book value of the company. The land is supposedly carried on the books for a "conservative" $40.00/acre. However, the only transaction I can find is the May 1997 purchase of 251,000 acres for $441,000 or $1.76/acre. Now we are told that this value will increase approximately 100 times. In general, accounting principles require assets to be carried at the lesser of cost or market value. Also, it does seem strange that the company was able to purchase land in 1997 for 1/100 of its market value today. If there are any accountants reading this I would be interested in their comments.