RE: Fair ValuationThank you Lincoln, yes for the most part I would agree. I wouldn't say the sales are super optimistic though, $5 million is in black and white in signed contracts, I didn't make the number up.
The Sino Forest comparison is a little off. Sino Forest is more like a Tembec or an Abitibi. A big chunk of Sino Forest revenue is wood chips, logs and imported wood products; they also have a wood flooring division.
You may find it interesting that total sales for the year, from the nursery operations for the year ended Dec 31, 2006 were only $4.8 million. Sino Forest only started the nursery operation in 2003 with sales of $0.2 million. Representing a 2400% growth in sales. Also from the report I read they start planting their seedlings at 3-4 month range, which would indicate the ability to grow 3-4 crops a year.
Less than 4% of their total revenue is based on seedling sales so I don't know if 18 times multiple is accurate. It could be high. It could be low.
PRT.un might be a closer comparison and they have a PE of 10.7 that would give us a share price of $0.62. Although PRT is a trust, so again, not a great comparison. If MPE signs a few more contracts the value could go up very quickly. I would also like to see the price of our seedling go up. From what I can tell PRT sells it's seedling for around $0.23.
Thanks for the debate Lincoln, I have found on these boards most debates turn into name-calling and very little discussion of fact or conjecture.