ProGreen US Inc. (fka PGUS)

[MoneyForNuthin]

Folks, I received some PM's from a couple of members who are just learning about ProGreen, asking how realistic I truly feel it is - in the foreseeable future - for PGUS to reach anything close to the numbers that I provided in two recent posts.

Most recent post, January 23:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=128054241

In this post, I'm referring to the Agricultural operations of Contel for the Ag land only (does not include the oceanfront land development project) based on the $1M contract just signed --

$1.15 PPS (a single grow cycle per year using all farmable land under ProGreen's control)
$1.725 PPS (1.5x grow cycles per year, average)
$2.30 PPS (2.0x grow cycles per year, average)

Valuation post on Jan 16:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=127900999

$0.851 PPS (contribution to valuation from Agricultural ops)
+
$1.32 (oceanfront development)

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FIRST
In the most recent post - we are ABSOLUTELY on the trajectory for that PPS, considering only the Ag land use, but it was NOT my intention to suggest that ALL of the land will actually contribute that much value; or that PGUS should be trading at $1+ PPS today.

I think most who've done a bit of DD and read a few posts here understand that I'm not pumping or suggesting we should be at $1 to $2 pps range right now. Please spend 30 minutes going over the sticky posts, if nothing else, and you will see where ProGreen is going.

Do I think Contel could scale up a growing operation to utilize 5000 acres and deliver that kind of value any time soon? Absolutely not. Is it possible? Yes, though not likely that we - ProGreen & Contel - will sit on the land long enough for that to happen. Simple math just multiplies the revs and margins from the 100 acres (40 ha) of the current $1M contract and gives those numbers that I provided. Very simple. Not so simple to scale up a growing operation to 5000 acres (but there are several Baja growing operations that COULD collectively absorb all of this land very quickly). But this tells us where we're starting and what trajectory we're on today.

In all likelihood, Contel, over the long run - with Jan influencing such decisions through the JV relationship - would more likely have a mix of 1) growing, 2) leasing, and 3) even selling some of the Ag land... over the next 3 years that we have the option for all of the land. We currently have the 1st 300 acres + 1,900 additional acres committed to "monetize" with an exclusive option for the remaining ~12,000 acres (of which ~4,000 is expected farmable) for 3 years. Leasing the land or selling it will not yield such high revs and margins as Contel growing on the land, but still VERY GOOD. So we should not expect to actually see a contribution for the ~5000 farmable acres through the Contel JV to reach $2 PPS, IMO, though anything is possible and it will become more clear what we should realistically expect over the coming year.

SECOND
In my original valuation post, I gave my current valuation at ~$0.12 PPS based on what we knew at the time. This is without having a purchase agreement yet for the oceanfront land, but with expectations of a first produce contract for the Ag land. The news of this first $1M is definitely better than expected. So I believe PGUS should be valued higher than my Jan 16 number of $0.12 pps.

We now have REAL NUMBERS to work with, and they are VERY GOOD revenue and margins, better than expected! I will work with my DD and numbers again, and within the next week or two I will post a basis for a new valuation. I will wait for now to see what other news we may receive, given that we are expecting to hear something more on the oceanfront land very soon.

Other than that, my answer is that yes, my long-term valuation potential of $0.851 + $1.32 = $2.171 is definitely achievable, keeping in mind that the $0.851 contribution from the Ag land uses may take up to 3 years to see, but the $1.32 contribution from the oceanfront land / development could be seen even within 1 year and could be significantly higher within 3 years (and yes, I understand that the actual development of the oceanfront project would likely take 20-30 years to COMPLETE... that does NOT take away from the near-term value of the land, it only says that there is much more upside potential over that 20-30 years that could develop for the company/value when the earth is broken and it begins to take form).

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Anyone can spend 1 or 2 hours on DD and see that ProGreen and Jan are solid for long-term investment and we are off to a great start for 2017 - much provided here in the stickies, and ALL in filings, PR's and updates are accessible from the ProGreen website at ProGreenUS.com.