Glaucus used this as a point to say it is a Ponzi scheme, Great...

Glaucus used this as a point to say it is a Ponzi scheme, Great southern plantations topped up the returns of early harvests because they weren't meeting prospectus guidelines and would dent sales of subsequent MIS years.

Glaucus's point is that if the indian sandalwood hit the open market it wouldn't attract the premium pricing that TFS/QIN is proposing is the market price.

Cost of capital discount needs to be >10% because that is the cost of capital of TFS/QIN

What I don't understand is TFS/QIN paying dividends when they are free cashflow negative. Until they can start recycling the trees/land they will be free cashflow negative as you have to establish your plantation.

NPV of these projects is heavily dependent on cost of capital because of the number of years until harvest and the final price. Cost of capital has been huge for TFS/QIN but was reducing and final price had been increasing.

How much that price holds up when supply increases 10 fold is a key determinant of what the share price of QIN will be.