Several months ago we were very excited about the long-term revenue stream that would be provided by leasing the enormous amount of land in Baja that Jan had strategically positioned ProGreen to gain control of - around 14,000 acres, of which 4,000 to 6,000 was expected to be farmable and therefore leased over the next few years for a total of about 5,000 (middle of range) x ~$1,000/acre/year ($800 to $1,200 range for non-organic "certified") = $5M/yr revenue... nearly all of which would be profit after initial costs of clearing the land and providing basic infrastructure.
That ~$5M/yr -- all profit, because we first receive 100% of any other costs back before splitting lease revenue -- would point to a valuation of 26 (PE ratio) x $5M = $130M. With O/S = 350M, this gives a PPS of $130M/$350M = 0.37 PPS. Heckuva a good reason to be excited, right?!?
NOW with CONTEL growing on the land AND THE MARGINS FROM THIS FIRST AGREEMENT, with the same 50-50 profit distribution (after we get back 100% of any/all money invested in the operation!), we see this number increase ENOURMOUSLY:
With a 55% margin (low end) on $1.2M (middle of range) for 40 hectares (100 acres) ---
55% of 1.2M is $660,000(this is for only 1 grow cycle!). Split 50-50, this gives ProGreen $330K for only 100 acres.
We have (estimated) 50x this amount of land available for farming.
50 x $330K = $16.5M PER YEAR PROFIT for ProGreen's investment! Not only that, but we get our TOTAL INVESTMENT RETURNED BEFORE PROFITS ARE SPLIT on each piece of land, giving us the ability to keep churning that money for additional pieces of land!!!
Using PE = 26, this gives 26 x $16.5M = $403M
$403M / 350M (shares O/S) = $1.15 PPS
This is FOR 1 GROW CYCLE - on average and over time, we'll likely have somewhere between 1.5 and 2.0 grow cycles over all of the land.
1.5x = $1.725 PPS
2.0x = $2.30 PPS
PGUS current price is $0.0134
Anyone know what opportunity sounds like when it knocks softly on your door? Some of us do... it's starting to pound on the door now, so listen up! Do your DD, get prepared fast now and GET LUCKY - luck is the intersection of opportunity and hard work (preparedness...DD).
This is ONLY FOR ABOUT 1/3 OF THE LAND WE HAVE UNDER OUR CONTROL. DOES NOT INCLUDE OTHER USES FOR THE NON-FARMABLE LAND.
This is ONLY FOR CONTEL'S AGRICULTURAL USE OF THE LAND. DOES NOT INCLUDE THE MASSIVE 4550+ ACRES OCEANFRONT LAND PROJECT - WHICH COULD EVENTUALLY SURPASS THE VALUE OF AG REVENUE ON THE 1/3 OF 14,000 ACRES - WHICH WILL START WITH SUBSTANTIAL VALUE UPON CLOSING THE PURCHASE DEAL FOR THE LAND - AND WHICH COULD INCREASE GREATLY WITHIN A FEW SHORT MONTHS WITH A MASTER PLAN!
Any questions now why longs are accumulating as much as we can and holding long????
Nonbelievers and naysayers, eat your heart out!
PGUS is for building generational wealth - IN MUCH SHORTER TIME THAN A GENERATION!
