Thanks for your awesome research ! Need more posts like this on...

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HeyShinichi

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03/02/16

12:14

Post #: 16930160
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Originally posted by tradenewb ↑

Here's why I think BFC is terribly undervalued:

In the AGM, this was mentioned: "If we were to take the previous sale prices of each of the assets and divide by the number of shares on issue, we derive a market value NTA per share of close to 70 cents per share versus the statutory NTA as in our accounts as at the date of listing of 33 cents per share."

So if what Dr Sexton claims is true, at the current price of 55c/share, someone with a big enough pocket could come along, buy a majority stake and asset-strip this company for a profit of around 40M. Let's take asset values as 70c/share then.

Next, Dashang's multimillion dollar deal with Beston. "Dashang has committed to take $42 million in products in the first year, $100 million in the second year, with expectations that the trade will continue to grow." Let's ignore the 100million in the second year for the sake of being convervative - and focus on the 42 million in the first year only.

Assuming Beston makes ~ 20% profit from the 42million, that would be 8.4million. A pretty decent P/E of 20 would give us an extra Market Cap of 168M. Let's generously round that down to 150M. That gives us a little bit more than 40c/share.

There are some things that we don't have enough figures to valuate with. The OZIRIS app? We can guess it's going to be big. The Sunwah deal? That announcement was price-sensitive and the price has hardly left the point where the announcement was made. Just a blind guess, but I feel that Sunwah-covering most of South China+HK+Macau...should be at the very least, be half as big as the Dashang deal.

So we have: 70c+40c=1.1/share
IMO, conservatively speaking, this company is at 1.1/share+OZIRIS+Sunwah Deal. How big it can go depends on how big you think OZIRIS and SUNWAH are. For now, just IMO, I'm not a Financial Analyst, below $1 is just ridiculous.

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Thanks for your awesome research ! Need more posts like this on HC, not people throwing up wild numbers out of thin air.
Cheers a million

BFC Price at posting: 55.0¢ Sentiment: Buy Disclosure: Held
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Thanks for your awesome research ! Need more posts like this on...

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Thanks for your awesome research ! Need more posts like this on...

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