In my opinion TFS Corp is at a reasonable value (0.82), their book value is $0.85 and their long term valuation is $1.45 with a discount of 12%. Their current PE ratio is 4.75. They pay an excellent dividend of 5.6% fully franked and have relatively low long term debt.
This is one company that have continually to make profits year after year.
As you may be aware TFC is the owner and manager of Indian sandalwood plantations and forestries in the east Kimberley region of Western Australia.
Indian Sandalwood is becoming a threatened species, the illegal harvesting in India has skyrocketed due to India's growing population and demand of the valuable fragrance the trees produce. In Hinduism sandalwood is considered as an alternative medicine - It gives a cool soothing effect to the body thus reducing the body heat. It is also for various religions both in China and Japan.
I think that the growing population of India, China and Japan and the scarcity of the species will make TFC a no brainer.
TFC Price at posting:
85.0¢ Sentiment: LT Buy Disclosure: Held
