I agree that a contrarian position on BJT should be very profitable in a year or two.
Under my worse nightmare scenario, BJT should still be able to generate 20m of cash flow a year. Assuming 10% required rate of return, it is worth 200m, 125% higher than current market cap.
Under a business as usual scenario, BJT should be able to generate 60m of cash flow a year. Again assuming 10% required rate of return, it is worth 600m, 575% higher than current market cap.
10% required rate of return is on the high side. I have used 10% just to show the point that BJT is significantly undervalued. Most properties are valued at a single digit cap rate.
BJT Price at posting:
17.5¢ Sentiment: Hold Disclosure: Held
