ProGreen US Inc. (fka PGUS)

[INSTATRADER]

PGUS DD... WHY LONGS ARE HOLDING TIGHT!

In OTC land, it is COMMON practice to say "flip" and take profits...That is WISE ADVICE when you are buying charts and momentum ONLY... Many are not capable of finding the "DIAMOND" in the rough, and when they attempt to, they get BURNED mightily... First problem is they do not KNOW WHAT THEY OWN and WHY!

Most OTC companies are pure GARBAGE and should be flipped when ANY gain can be had...

Below is the case to HOLD your shares of PGUS TIGHT! OR begin to take a position!

First I will list my 9 basics you want to see from a company before you even THINK of holding vs flipping in OTC land

1) One must see an IR department or UPPER MGMT that COMMUNICATES with its shareholders.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=124371756

2) One MUST see that a company has REAL NEAR-TERM CASH FLOW OPPORTUNITIES as well as a plan to keep those cash flows rolling in LONG TERM.
https://progreenus.wordpress.com/2016/08/07/baja-business-update/

3) The industry must be as close to recession-proof as one can be...
Everyone eats vegetables in one form or another, and everyone needs a place to live. That will never change. Still many others are looking for a climate friendly place to vacation or retire.... The acreage for agricultural use has seen water underground, and after testing the virgin land we may also have a HIGH rental income on what can be called "organic land". This land will be NNN leased out to a major corporation for decades at a time.....

Most investors in today's net lease market prefer an investment that is truly passive, therefore, an absolute net lease is a requirement for many of these investors. Investors prefer to hold these assets long-term, which means there is likely some wear and tear maintenance, as well as a roof that will need to be replaced at some point. With an absolute net lease in , the risk of expenses associated with building maintenance shifts solely to the tenant, allowing the landlord to receive a 100% passive investment.

4) The management team must explain to its shareholders - their goals and a plan to execute.
http://www.marketwired.com/press-release/progreen-properties-inc-open-letter-to-shareholders-otc-pink-pgei-2139748.htm

5) Company must be CURRENT IN ITS REPORTING or have a damn good reason why it isnt.
http://google.brand.edgar-online.com/?sym=PGEI


6) Debt levels must be SUSTAINABLE long term, or DIMINISHING over time.
$600k IN debt GONE for Preferred shares..Poof!
http://google.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=11193326-1187-15745&type=sect&TabIndex=2&companyid=59977&ppu=%252fdefault.aspx%253fsym%253dPGEI

7) A company that has heavy and recent insider buying is a company that is going places...
http://google.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=11493282-1372-9069&type=sect&TabIndex=2&companyid=59977&ppu=%252fdefault.aspx%253fsym%253dPGEI
http://google.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=11493096-1380-9518&type=sect&TabIndex=2&companyid=59977&ppu=%252fdefault.aspx%253fsym%253dPGEI

8) Company MUST be SEC compliant OR HAVE A DAMN GOOD REASON WHY IT ISNT
http://google.brand.edgar-online.com/?sym=PGEI


9) Who owns the stock? Who are your fellow shareholders?
Think it means nothing? NOPE! It means everything in times like these. Go to the message boards...See if there are KNOWLEDGABLE LONGS who believe in the company. Ask them to explain why... See how LOCKED the FLOAT is. See if they share DD with all or not...


PGUS checks off all the boxes on ALL 9 Basics..INCLUDING THE MESSAGE BOARD

I could end it there but thats just the beginning.... We now know this is a ticker to HOLD. Now lets see if we can figure on the FUTURE cause thats where REAL money is made...Not flipping for beer money on MOMENTUM and CHARTS only.... Those are the reasons you find PGUS...The DD is why you STAY...

In attempting to come up with a TRUE VALUE of this company, a few assumptions must be made:

Lets start with a 1X $150K in NET profits on the initial 300 acres...

Next we assume year 1 of LEASED AGRICULTURAL LAND pays on the LOWER end of expectations and has not fully been shown to be ORGANIC land... There is expected $4M of revenue/year on ~5000 acres (if the land comes in as ORGANIC the rate goes from ~$800/acre/year to $2000/acre/year. Mind you this is VIRGIN land but we will still assume its not "organic"

As mentioned earlier, this land will be NNN leased so these REVS will be essentially NET!

The stock screener tool on Finviz.com divides real estate companies into somewhat different industry categories. Median forward P/E among real estate developers is 26.27 as of May 2015.

http://www.investopedia.com/ask/answers/052815/what-pricetoearnings-ratio-average-real-estate-sector.asp


Divide $4M in NET profits by 336M in O/S and that gets you .012/share

As referenced earlier... the real estate sector uses a PE of 26..

I will use just HALF of that...13
13 * .012 = .156/share = TODAYS TRUE PGUS value...

THIS IS NOT INCLUDING THE 14 PROPERTIES IN MICHIGAN!

THIS IS NOT INCLUDING THE ~7000 DEVELOPABLE ACRES LEFT FROM THE INTIAL 12000....

THIS IS NOT INCLUDING THE buying power of the remaining $2.5M in the credit facility which could effectively DOUBLE these numbers with the next deal!...

THIS IS NOT INCLUDING THE buying power of the $450K (value of first 300 acres currently for sale) or the first $2.5M from the credit facility that will be returned to the company BEFORE any profit sharing on sale or lease of the properties... which could again DOUBLE these initial numbers with more deals going forward!



.............P G U S........ V A L U A T I O N.......TODAY .156


Bottom line .15 is where I will begin offering 10% of my shares for sale... This is now. I expect my selling price for 10% of my shares to be raised from time to time as the new projects are added. From today's update, it may not be too long before I make an upward adjustment on that number

Any shares sold for less is foolish and is giving away thousands tomorrow for dozens today.... We will have our ups and downs...especially this coming week....But THINK BIG and TRUST THE DD...

INVEST WISELY