quote:Originally posted by madmoney: they did not say how mutch of the value of these resources will be comming to them, they did say a number of other contractors would be involved in recovery, transport, finishing and sales. I would like to see profit projections and a time line neither of witch were mentioned in this conference. I am shure they will get this contract but the road to revenue generation will be many months away maybe a year or more. just looking for solid answeres to relavent questions. [/QB]
I am confused at what you are saying. on one stand, you say they have 15% profit margin and on the other, you say you are not sure of profit projection. on one side you say they have secured projected 1.5B worth of contract, this would mean they obtained the contract solely for themselves, and revenues generated would be for themselves, on the other you point to some tom contractor elsewhere. i agree with you that main thing is how quickly will this start generating revenue, but if it starts generating revenue from the contract, any stock market expert would put the price of the stock at $2 $3 and not 0.1, thats 2000-3000% appreciation you are talking about!
-------------------- All my posts are based on my own opinions and not to be taken as buy/sell recommendations. Posts: 961 | Registered: May 2006
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-------------------- All my posts are based on my own opinions and not to be taken as buy/sell recommendations. Posts: 961 | Registered: May 2006
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quote:Originally posted by milliam: FHAL knows the guy who has the exclusive contract for all of the Amazon retrieval. Not just the 6mil cubic meters, but all. This contract is just for the 6mil.
Conference is over.
milliam - are you referring to CEOTA or someone else when you say "FHAL knows the guy . . ."? Just curious because the CEOTA website states they have rights to only 100 miles of the Amazon.
Posts: 603 | From: Plymouth, MN | Registered: Jun 2004
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posted
ruskin_muskin : I listened to the conference, no one asked what the projected profits were, no one asked about a time line for recovery. actualy come to think of it the last caller asked about thier margin on this deal and did not get a clear answere. hence my questions. and it was the CEO who talked about the other contractors, it all sounds good so far, just looking for a clearer picture of this deal. no doubt that when the contract PR is issued many of these questions will be answered. thanks for everyones input!
Posts: 2503 | From: connecticut | Registered: Mar 2005
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posted
true mad.. i got little confused by your post.. sorry abt that..anyways time to celebrate for us all!!
-------------------- All my posts are based on my own opinions and not to be taken as buy/sell recommendations. Posts: 961 | Registered: May 2006
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quote:Originally posted by milliam: Contract should be signed today or tomorrow. The license can be expanded to the entire Amazon. The contract now is just for 6mil...$1.5bil
I like this part of the news conference. Today after hours PR stating contract signed would be just what we need. Then another PR in the morning giving us the meat of the Deal.
Posts: 434 | From: NEBRASKA | Registered: Feb 2005
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quote:Originally posted by MTPromises: milliam - are you referring to CEOTA or someone else when you say "FHAL knows the guy . . ."? Just curious because the CEOTA website states they have rights to only 100 miles of the Amazon.
Mark, the ceo, made it sound like the guy who had the rights to all of the sunken trees in the Amazon was a friend of his. I think he went on to say that the guy is a missionary in Amazon and didn't want to be bothered with getting all of this wood up and out for sale. I might have mis-understood something though. I know he did remark a few times about this contract only being for a section of what is actually available and that the rest could very well be theirs in the future.
Posts: 1028 | From: Georgia | Registered: Jul 2005
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As for the 15% profit margin...that was all based solely on their current trucker brokerage business. IMHO, this Amazon deal is something totally different. I would hope their profit margin on this could be better, but I don't know much about this kind of stuff.
Posts: 1028 | From: Georgia | Registered: Jul 2005
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posted
i dont think real run.. this shall steadily rise for next 3 days and when PR comes..BOOM!!!..
-------------------- All my posts are based on my own opinions and not to be taken as buy/sell recommendations. Posts: 961 | Registered: May 2006
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posted
here we go back up again. lets hope for a good run before close then NICE pr tomorrow hopefully!!
Posts: 909 | From: PA | Registered: May 2006
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I'm out for now and will get back in on a dip if there is one. I've flipped this a few times and could get 20K shares with what's been made so far. This has been a good one for flipping waiting on the pr.
Posts: 2132 | Registered: Sep 2004
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BOOM.. good i didnt flip it yesterday .. tomorrow another green..with 10-15% gain and then the next day PR.. BOOM!!!
-------------------- All my posts are based on my own opinions and not to be taken as buy/sell recommendations. Posts: 961 | Registered: May 2006
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posted
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GLTA, The Phat Man Posts: 1236 | Registered: Apr 2006
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posted
This is what the contract covers, from Ceota website:
CEOTA has the exclusive license to recover logs from a 100 mile stretch of the Amazon River in Brazil. Experts have determined through sonar analysis and measured navigational hazards there are at least 6,000,000 cubic meters of easily recoverable wood. This 100 mile stretch is what ceota is contracting out to FHAL to handle. Notice the phrase EASILY RECOVERABLE.
A 15% profit margin, what does that mean? It means that after all expenses, from paying the subs that retrieve the logs from the river to paying for pencils on their desk, they will have 15% of the gross left over as profit, in this case $225M. Even IF it takes 5 years for this first phase, which I don't think it will because alot of the people that will be contracted to do the work are already in place, it would still be $45M PROFIT per year.
Just use the PROFIT per year to value the share price on outstanding shares it still works out to .67/share. This should give an absolute rock bottom price per share of the company. Something else to consider is that they also have other portions of the business that are making money and expanding, so the net profit of the company as a whole will be more than this.
Also remember that the $1.5B dollar figure was based on average condition of the logs. The 4600 logs that have been recovered as a test were considered grade A condition, so the overall total could potentially be higher.
If the estimated time to recover the logs in this 100 mile stretch is less than 5 years then the pps would be higher and if it is longer than 5 years then you could expect the rock bottom share price to be less than .67
From the news conference today they are expecting to get more than this initial 100 mile stretch. This is only phase 1 and as it said in the PR, THIS IS THE FIRST LOI, which to me sounds as though they have more surprises in the works.
Once they are operating and showing the world they can handle this size of project, I would expect they would have companies beating down their door to handle large projects for them.
$1.5B dollar project,,,,,,,,,how many companies can you name that are awarded this size of project?
Now of those you just thought of, how many of them are listed on the big boards? I would venture a guess that all of them were either NYSE or AMEX or NASDAQ companies. Point is, I can't think of another Pink sheet company that has been trusted with a project of this size.
IMO, We are in on the ground floor of a soon to be very very good company.Posts: 434 | From: NEBRASKA | Registered: Feb 2005
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posted
67 cents per share is no problem. Was 30 cents 5 months ago. Could be alot more with new L.O.I.s
Posts: 282 | From: Atlanta Ga. | Registered: Apr 2005
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