good news - wise owl retains buy 1.58 target!

Hi,

Wiseowl remains firmly positive on TFS valuation $2.73 and 12 month target set awhile ago remains at 1.58):

Note in particular the comments:

The payments from the institutional investor commence when the related land sale contract settles. Payments to TFC under the institutional model flow at several points, including the settlement of the initial land sale, the plantation establishment fee, annual fees for plantation management and maintenance costs, and a performance fee
upon the investor achieving a hurdle rate of return.
The various stages of conditions in the agreement process require time and could potentially CAUSE DELAYS in cash settlement. Whilst cash flows remain an important aspect in its operations, investors should not deter from the fact that SALES AGREEMENTS HAVE BEEN LOCKED IN and will
provide future cash flow.

(No comment on $30 mill, so assume received or delayed in light of above).

Attractive investment case at current levels. Release of FY10 results are expected to re-rate TFC with some of the world?s biggest institutions investing in its plantations. Our earnings based valuation and 12 month price target of $1.58 remains unchanged with TFC on track to achieve its
FY10 earnings guidance.

Only company in the forestry sector to increase sales during FY10 and on track to achieve its earnings growth guidance of 10%.

TFC is in a financially and strategically strong position relative to its peers with its low debt levels and vertically integrated operations.

Successful transition to institutional sales means TFC is no longer susceptible to the fragile MIS market which has been responsible for the downfall of its main competitors.

Investments by major overseas institutions vindicate
management?s decision to pursue revenue opportunities and
highlight the global attractiveness of Beyond Carbon.


https://promo-manager.server-secure.com/download/files/03059/175397/TFC+Update+25072010+Final.pdf