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Local Garden (Alterrus) Favorite Company of 2013
Looks like Alterrus has gotten the attention of the Globe and Mail and was listed as one of the favorite small companies of 2013.
http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/day-to-day/photos-our-favourite-small-businesses-of-2013/article16088915/?utm_source=Shared+Article+Sent+to+User&utm_medium=E-mail%3A+Newsletters+%2F+E-Blasts+%2F+etc.&utm_campaign=Shared+Web+Article+Links
Interesting Assumptions
I would say your calculation is extremely conservative, barring that they actually build 315 units. I think there would be much more than 5 units per 63 regions. That would mean British Columbia, where Vancouver is located could only have 5 farms, which is exactly what they would have for just Vancouver. New York/New Jersey could sustain more than 10 farms overall. New York is 16 times larger than Vancouver, so they could sustain much more farms.
I would have estimated it by population, whereas Vancouver could sustain 1 unit for every 100 people. The population of the US is 300 Million, so 3000 units perhaps. And that would be a ceiling amount.
So $1 million in profit is ~ $0.01 a share. So 3000 times that is well, $30.00 a share. And with a share price of 0.05, that's a PE of 0.0016. Now I am not saying Alterrus well install 3000 units, but that would be a good ceiling amount. So let's take 1/4 of that, 750 units, with $0.01/share profit, that is a PE of 0.0064. At a share price of $100, that is 13.33. So yes well in the range of $45 - $100 a share. I agree that that is the potential. Wow, we finally agree on something.
AND THAT'S ONLY NORTH AMERICA.
PS, as you see at the end of my comments, I do not insert any personal attacks, rather just add to the discussion. But again, its baby steps. You are getting there. Atleast you aren't name calling.
I signed in today just to say this....
I have been reading posts here for some time now, many years, and have become VERY tired of Up She Grows posts. You DO attack personally. Go back and read your posts. For someone with the education you claim too have you at times sound like an arrogant adolescent at best.
Please stick to posting GOOD information and insights. The bickering between you two is irritating and provides very little to the rest of us. I'm sure both of you can be helpful and give good info to think about but I don't want to read through all the other crap in the post just to extract a small amount of relevant information.
I'm not accountant, how boring, nor am I an investment consultant. Just a production manager in the heavy steel fabrication industry of an 18 million dollar a year company where I've been employed for 27 years.
I'm not going to get into arguments with you two "know it alls" and I wish you two would stop. I just want info on the news / progression and growth of this very interesting company. That I own, what I consider, a decent amount of stock in. I have for many years. I love the direction this company is headed now and I hope it makes us ALL allot of money.
Differences of opinions are fine and mistakes can happen. That doesn't necessitate constant on-going bickering and name calling.
This is the last post you will see from me so attacks on this post will be laughed off and NOT replied to.
Good Day!
Morning, upshegrows.
Let's see now;
Now, if there are 50 states, 10 provinces and 3 territories then that equals 63 unique geographic area's in North America to target.
Now if Alterrus can setup 5 farms in each city then that's 315 operating units in just North America.
Now if each of those operating units makes $1.5M to $2M in Revenue which has already shown to be realistic, then Alterrus can create sales of $473M to $630M per year.
Now, if operating costs don't rise proportionately to sales and neither do admin or general expenses, then clearly the company will be able to expand there net margin.
Now if the net margins eventually expand and become 10% then the earnings will be $47M-$63M annually.
Now, the company only has 145M shares outstanding. So, therefore $63M in earnings waterfalls down to $.43/share. Actually, it's $.43448 but let's call it $.43 to remain conservative.
Now, if that conservative estimate of future earnings is $.43/share then the stock should trade at 100X earnings which implies value of $43/share. Why? Because Lululemon did.
Now if the stock is currently $.06/share and it's going to $43/share then that's 716X your money people. Now, if you invest just $1,396.65 today then your going to be a millionaire in no time!
Oh, and don't listen to that USG guy who educated me on accounting even though my wife's an accountant and I'm an MBA. He has a lot to say but never backs it up with the fundamental numbers like I just did.
Not an insult, an explanation for personally attacking or putting someone down. It is a well known fact that many "bully's" attack people due to their low self esteem. It makes them feel better to degrade or personally attack someone else. Jus sayin'
Doesn't it feel good to say those words..."I stand corrected!" It's alright to be wrong. No one is ever right all the time. Wow, I feel like you made a really big step today USG! I am proud of you!
i stand corrected then.
let the record show ... this is not actually an insult.
6)"Not sure if you have an inferiority complex, or small man's syndrome [sic], but you must be making up for something"
Thanks!
You just listed all quotes that were given to your personal attacks.
1) Sad life - if you get off on attacking people personally because they made an accounting error. Do you beat up the guy that drops the ball on your baseball team too?
2) You are a good accountant, but not someone that makes Business decisions. Not sure if that is a personal attack or stating you need more business background to be a CEO, sorry scratch that, a Successful CEO!
3)Level 5 Leader; if you read the book, this is an extremely rare feat, most CEOs have not met this challenge, not even Lee Iacocca.
4)and inspiring CEO is a Level 5 Leader. So again, not a personal attack, but a realty.
5)arrogance? Well we can easily see that from your posts and personal attacks.
6) Asking about why you make personal attacks.
Now, I would love for you to copy and paste, one actual personal attack. Somewhere I called you a name, or stupid, or stated anything that was baseless? That I would love to see.
1)"Pretty sad life you have"
2)"You be great as a bean counter, just not as a CEO of a company"
3)"you have displayed that there is no way that you could ever be a Level 5 leader"
4)"even if you were a CEO, you wouldn't be that good of one (and definitely not an inspiring one)."
5)"you stink of arrogance"
6)"Not sure if you have an inferiority complex, or small man's syndrome [sic], but you must be making up for something"
Examples
Sure. Would love some examples. If you are suggesting my being critical of your business background, that isnt a personal attack. Just stating that, like me, as I dont have an accounting background, you may be lacking in some business fundamentals. I am extremely versatile in statistics as well, and I am betting you probably do not have that background. In terms of healthcare, well, I have a very limited knowledge. I dont take that as a personal, just that I dont have that knowledge base. It is alright not to have a deep business knowledge base. That's what I am here for, to help you with that!
Also, would it make you feel better if I cancelled my moderator status. I do not mind. It was only done to try and update the ASIUF information. Would that make you feel better? Just say the word!
so, you don't like personal attacks and yet you've issued many personal attacks yourself? need examples? what gives?
interesting behaviour for the self appointed board moderator.
facts remain; you're over your head in a parking lot puddle.
Right, when you have nothing to come back with, go after autocorrect mistakes. What's with "a long length of rope is now yours and for any followers drinking the koolaid - i wish you success in equal proportions to your independent though and analysis. " Are you expecting all a ton of posts screaming for you to not leave this board?
Please USG, dont leave!!!
Listen, I dont mind having discussions with you. I just respect when you have actual points, and not just personal attacks that what I say is incorrect. I mean other than your accounting insight. If you gave me a good reason why selling systems was a viable option, I would listen. But as of yet, you havent given one reason at all, other than it would increase revenue.
yeah, I've definately dug myself a "dipper" hole. my bad.
enough arguing with the dullards. i can think of better things to do than waste more brain cells on the intellectually disabled.
as i said, a long length of rope is now yours and for any followers drinking the koolaid - i wish you success in equal proportions to your independent though and analysis.
Cannibalize sales....
Oh, even worse! Alterrus should sell a product but also sell the systems to competitors to produce the same type product, and then maintain those systems as well? OMG!!!
Its one thing selling one royalty based system in China (a different market/country, etc...) to get capital to continue to grow in NA, and its another selling numerous systems in NA to third party competitors if you are also operating and selling the same products. Seriously? You dug even dipper! Which again shows that your business strategy knowledge is somewhat lacking. But that is okay, these forums are great to learn from. I learned some accounting, you learned some business strategy!
go back and reread the 3 (not two that you listed, but the three that I wrote about) sources of revenue.
1) Owner/Operator [Like Vancouver]
2) Selling the machines [Like China]
3) Servicing the machines [Possibly include in Chinese deal]
According to you, I've gotten the revenue model wrong. That's the kind of logic that we've all come to expect from you.
... So you were so self-absorbed that you decided to self appoint yourself ...
John Kerry???
Oh, so you are flip flopping between posts. I took your more recent post, as you stated that they can not be profitable. I never said they would be profitable overnight. It takes time for their system to reach full potential, as well as their marketing and customer development. I am hoping 2014, though it may be 2015, but I do think it is on the horizon.
To be a board moderator, anyone can apply. I just felt that some of the information on the board was a little outdated, however the format is difficult to change. If you like, you too can be a moderator. I actually have never stated that I was a moderator, nor do I see it as a "special" appointment. It is you that feels insecure about it and as brought it up.
Also, your 2011 post states that their revenue would come from outright sales (of systems, not product), and servicing revenue, (of systems of course, not product). So your business model was completely not the one chosen by Alterrus in the end. So either you have way more knowledge and business insight and should be the one running Alterrus, or Chris Ng actually knows what he is doing, and targeted the most successful business model (selling a product, and not a system).
So actually, your post below, even moreso strengthens the case that your insight to a Verticrop System selling model was (and is) incorrect from the onset. Now does this mean, everything you state from now on should be thrown out and disregarded. No, you can still have good valid points, and critical thinking, as long as you aren't focused solely on trying to prove me (or anyone else for that matter) wrong. Then you are just blinded.
Artfully avoided:
Just out of curiosity though ... How did you become the board moderator? Were you really that self absorbed that you pushed the button to self-appoint?
_____________________________
So I've said from start they can't be profitable huh? Here is one of my first posts from Feb 11/2011. If only the truth were half as interesting as your imagination.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59836358
And I quote from that post...
The total revenue model will likely be a combination of a) owner operated revenue, b) outright sales, c) servicing revenue.
I’m quite excited about the prospects but one task remains … we must see some revenue generation by any of the means shown above.
______________________________
As for this: " My point here is that anyone hanging their hat on positive bottom line earnings at this stage of the game is in my opinion certifiably and unequivocally delusional"
Who's been correct ... me or you?
The financial back me up. What backs you up is your pie in the sky ... "if my aunt had balls she'd be my uncle" analysis.
Open Conversation
Selling a system to China to gain capital for further expansion, and developing a business model that aims only at selling systems to third party vendors and not operating those systems by the company itself, well, ... are two very things. Selling systems and operating your own systems and selling a product and brand are two very different strategies. As I mentioned before, selling systems was their original strategy when Stephen Fane was CEO, and when Chris Ng came aboard, they did an about turn, and switched business strategies.
Just because I wasn't incorporating receivables into sales (which was my only mistake), does not mean that all my knowledge and insight is now deemed false, and incorrect. Even the smartest, most innovative people make mistakes, and actually, it is those that learn from their mistakes that are truly the smart ones.
Here is one of your quotes:
"My point here is that anyone hanging their hat on positive bottom line earnings at this stage of the game is in my opinion certifiably and unequivocally delusional. "
From the very start you stated Alterrus could not find profit in selling a product (and that includes a brand). I believe that is incorrect, with demand, over 4 times what their rooftop system produces in Vancouver alone, I believe that they will be able to achieve a profit. It may take them a second installation to reach it, but I believe they can do this. And they may use the China systems capital to fund this.
Secondly, they have positioned themselves in a much better financial position. Yes they diluted shares, but at the current share price, I believe the share price is well undervalued. So if shares are diluted at an extremely diluted share price, it is not as negative a concern. So take ~150 Million shares of ASIUF (that is a conservative case). This means they only need to achieve $1.5 million in profit for $0.01 a share. If they were to do this, they would have a PE ratio of 5. An extremely low PE for a company with huge growth potential, particularly if they have the ability to expand into every North American city, let alone worldwide.
Moreover, with a volume of ~20,000 shares sold daily, at a share price of ~$0.05, there would need to be catastrophic news (bankruptcy) for the price to fall to 0.01 or lower (and not from a one time ~200 share purchase). Reversely, if ASIUF proves a profit within 2014, that share price could attract the attention of institutional investors, and could see the price close in on $1, (a PE of 100, which is still significantly small for a company with huge growth potential; Lululemon is still at a PE of ~40 and has slowed to single digit growth).
So if you think that because I was incorrect about misinterpreting that receivables were not being incorporated into sales, and that as such, everything I state, or offer is completely invalid, well then, that seems pretty closed minded to me. But, to each his own.
Congratulations, you're a genius. All that success without even knowing what a receivable was.
See Barunuuk, it's posts like this that are inflammatory. You say I make comments without providing fundamental backing. The truth is, if I didn't provide you with fundamental backing then you'd still be scratching your head wondering why the huge ramp up in receivables didn't translate to the revenue line.
You say it's all about building a brand. I do agree. But I also know that it's hard for a company to build out infrastructure when you owe more than you own, have no savings and have already hugely diluted your shareholder base. So, I've suggested they could look to sell the verticrop as a way making money. Lo and behold, enter China ...
As I've said, moving on ... while I've enjoyed some of the personal one on ones with other posters (and thank you for that)its clear to me that with you here, it takes away way more than it gives.
Just out of curiosity though ... How did you become the board moderator? Were you really that self absorbed that you pushed the button to self-appoint?
USG
Aside from your accounting insight, all you have really provided is personal attacks when someone questions your opinion, or after you attack someone's opinion (mainly mine) without providing any fundamental backing. I will give you that I was incorrect about the receivables from the summer quarterly, and I am glad that I was corrected (though you could have done it in a much more professional and comprehensive manner), however, my investment insight to Alterrus, and the my business and investment background (and record), I feel has given me an edge on investments and an insight to potentially strong investments. Would I bet the bank on Alterrus? No, that's why I have shares of BAC (closing in on $17 and should hit $30 by 2015 in my opinion, bought it 2 years ago @ $6 - $7). That's why I bought AMD down below $4, as I see a company that has quickly refocused themselves and should see a nice short squeeze when 4th quarter earnings come out (due to high Xbox, Playstation and iMac sales).
I bought Lululemon when at its IPO and all the way down to $4, even though all the experts said it was a trend comparable to Crocs. And when it hit $180 a share, I sold, and bought BAC. And it was from a Lululemon article stating Chris Ng moved over to Alterrus which brought my attention to ASIUF. It was his strategies, and his background that I realized that this great idea/technology, has a strong leader that has the ability to make this a successful venture. And I tell you know, it is NOT from selling the Verticrop systems. It is by building a strong brand, and controlling the production and innovation of that technology, not selling it off to a second party and hoping they succeed so royalties may be achieved. And that is exactly what Chris Ng has been doing. Also, Alterrus is closing in on profit, and when that happens, it will not be a penny stock anymore, but a growth stock, a company that will be able to push growth quite aggressively. I also like that Alterrus is resizing their microgreens as well. Not only is this good as consumers can buy them at a smaller size, but that will increase the margins, as they will be able to sell more products, for close to the same price. For example, if microgreen are cut in half, the price will probably only drop 20 - 30% and still be affordable. Paying $3.50 for a 21 gram package, instead of $6 for
a 42 gram package.
Now if you cant handle the heat, and it's obvious yesterday's 200 a share purchase (which was the last one of the day it looks like), proved that, yes, ASIUF is manipulated. Just like when computer algorithms used by big investment companies buying and selling billions of dollars, can make a larger share price move if operating incorrectly, someone with $1000s of dollars, could easily push ASIUF stock up over 50% in a trading day. It wouldnt take much to push this stock up if one wanted to. This also means that if one wanted to purchase >$50K of ASIUF shares, it would need to be done over a long period of time, unless they want to pay between 0.20 - $1.00 a share to get it.
My investment in Alterrus was made specifically for the Verticrop commercialization. Prior to that, I didn't even know the company existed.
Tread lightly there, upshegrows.
At this point I'm having trouble deciding which piece of art on the wall of your living room you covet more;
1)Jesse Ventura pointillism portrait
2)Retro-chic Chicken Little poster
3)The large 72' x 72' mirror or,
4)Bigfoot lives bobblehead
Rumour has it you spend a lot of time admiring the mirror.
At this point, anyone who tunes in to listen to your investment fallacies deserves what's coming to them. For that reason, I'll step aside from this forum for the time being as its an asymetric payoff for me at this point and I'm on the losing end.
(The equivalent of providing you a long length of rope)
Best of luck to all other posters.
For the record, I remain long my shares of ASIUF with no plans to change that at this point.
Look at that:
This morning someone bought 1111 share of Alterrus at 0.0441 which is ~$49, and then someone bought 200 shares at $0.06 ($12) as of 11:30 AM Pacific. How is that not manipulation. Or was that a mistake? It is obvious that USG is just looking to contradict or criticize anything I say. That's the problem is that you are too vested in trying to prove that I am incorrect about statements, that you are blind to what is really going on.
Stay to crunching numbers and leave the investing to those that know.
4 more Vancouver greenhouses.
With 4 more potential greenhouse, Alterrus' revenue potential could jump ~ 4 x (1.5 - $2 Million from past estimation), $6 - $8 million a year. Depending on the locations, (I would assume they would increase on lower level of parking lot or expand on the top level), so operation costs wouldn't increase proportionally, nor would admin and general expenses, nor marketing, etc....
So if Vancouver has a ~$8 million revenue potential, expanding this business plan to every large NA city would easily give Alterrus revenues greater than > 100 million a year.
Look at Sprouts Farmers Market(SFM), they are expansions in Kansas and Georgia. There is definitely a market for this food. And the best part of Alterrus is that they can build smaller operations in smaller cities, and capitalize on their process, where many of the other vertical farms require large footprints, and higher operating costs, and therefore require more dense populations.
The reasoning for the manipulation is that, if the end of day share price is, say $0.04 a share, instead of $0.06, then the buyer's 10,000 order at 0.03 a share seems more inline to the current share price. Also, if you notice, the share price of ~0.31 fell down to $0.06 a share, 1.25 to 1.5 times the usual share price of (0.04 - 0.05). It then subsequently fell back to 0.04 a share.
When the average daily volume is 20,000 (~$1000 at $0.05 a share), it doesnt take much to manipulate the stock. Also, there always seems to be someone selling and buying lots of 10,000 shares at a time. And at the end of the day (or beginning), the share price either drops or jumps with only ~200 shares. So how is that not manipulation? Check your facts before you start trying to come off as a know it all.
BTW, your comments about Alterrus reaching their maximum revenue was thrown out when they doubled revenue last quarter, so you obviously were wrong.
Not argueing that the 300 or 350 shares was a mistake or not. I am argueing that the Alterrus stock can be manipulated (and this could have been one of those times), and has been manipulated over the last couple years. I have seen of 200 - 400 shares jump or drop the price of Alterrus stock between $0.03 and 0.06. In these cases, open orders of 10,000 shares was available, yet someone only bought 200 shares ($6 - $12 of shares). And you are saying that this isnt on purpose, or share manipulation?
Come on USGs. You just argue for the sake of argueing. I atleast provide facts to back it up.
Hi, The Only Way is UP.
Hi I know this is late but regarding Farmedhere, Yes they use lights but so do commercial Growers. They do this to keep quality production and continuity of supply, and we will find that lights will be needed on the VertiCrop system during the darker months.
The cost of the running the lights can be greatly reduced ( by at least 50%) Again this is proven concept that commercial growers are using.
There is Induction & Led lighting that can be used.
Interview with Rae Abbott
http://vancouverisawesome.com/2013/12/19/la-vida-local-local-garden/
This is silly.
It was not 300 shares it was 350 shares. And in fact it was the odd lot remainder of an overall 9350 buy. The board lots went through at the limit price and the odd lot of 350 didn't fill immediately. So the buyer likely went and changed the limit price to a market order attempting to fill the remaining balance of the trade not realizing the gap in the bid/ask on this illiquid stock.
The trade has since been busted which tells you it was an error.
Your theory:
An investor decided to overpay 10x the market price by using $99 of ammunition to "manipulate" the stock price up for perhaps ... 20 minutes?? Right up until the next trade brought the stock price back immediately back in line to trending price.
So, what exactly was the point, in your words, of this manipulation scheme? To move the price for 20 minutes?
For the record, what I'll continue to argue with is posters that talk way above their circle of competence. Ever notice, it's always you and that I don't argue with anyone else. Just you, the self appointed board moderator. The truth is, I've been holding my tongue reading your brilliant analysis of the numbers ...
The day after Christmas we will eat baby spinach accompanying pan-seared scallops (among other things) in a gourmet restaurant in an old mafia town that became known as party refuge for gays before they became legal to celebrate a 50-year war.
Never heard of no baby spinach before I learned about it here but I expect the atrocities done to scallops most everywhere will be rectified in a gourmet restaurant as will the canards against the folks at Alterrus trying to do hydroponics right.
Don't expect we will be around for our Golden Anniversary since a biotech that discovered the Lazarus gene [SNTI0 was beaten into the ground by the GMO lunatics but our kids and naybe even some shares of Alterrus might be.
May the warring here and most everywhere cool a mite and a bit of peace reign as it has for us for some 50 years. There are signs of progress if you look real hard.
Best, Terry
You can easily manipulate Alterrus' share price with $100. 300 shares were purchased at $0.31, which is $93. At 3 cents a share, that would be $9. Was someone really interested in buying $9 of shares. Not likely. There is contantly a 10,000 sell order at a penny or so above the last sale price. Most of the daily share volumes that go thru are in the range of 5,000 to 10,000 (or higher) at the $0.03 - 0.06. I watch the Alterrus price daily, and notice many times, 200 - 300 share volumes used either at the beginning of the day to bring the price down to $0.03, or at the end of the day to bosst it back up to ~$0.06.
I think USGs just argues for the sake of arguing.
Hi, upshegrows.
no one is going to manipulate anything with $100.
I gathered that fat finger trade [just my interpretation] was rubbed out but far less than $100 appears to be used to manipulate the market. I have seen many small penny stocks have heavy selling all day and then a day ending buy of a dollar or so at the end of the day that sets the price until the market opens the next day. This can go on for an extended period of time.
The most obvious suspect is an MM or computer trader that need pay no commission.
How effective are these strategies?
The answer would seem to be in how common they appear to occur.
For those not actively trading, I consider the matter a minor nuisance.
JMO.
Best, Terry
no one is going to manipulate anything with $100. all the trades were placed consecutively through a Fidelity account. Someone miscalculated the market depth and got burned on a market order or made a typo.
It was most likely someone trying to move the price up. You can see that it was a total of 350 shares which is $100. There is a lot of that manipulation as there isn't much daily volume on Alterrus yet. The share price of Alterrus is not a true reflection of what it really is, as 200 shares could move the price between $0.03 and $0.07 easily. What this also means is that it is very difficult to get a good sizable amount of shares as you could jump the price up over 200% in order to do that, and again, reversely, would need to sell out at 0.01 a share to get out quickly.
Once (and if) the company sees profits, then the volumes and share prices will stabilize. I am wondering if Chris Ng is waiting for profitability here in the new year before the reverse split to guard from the price dropping back down to 0.05 a share from the reverse split amount of 0.30 cents a share.
I saw that, too, and I was kind of thinking that maybe someone fat-fingered their order for 0.3017 instead of 0.0317.
(I wonder how many other people spent five minutes or so in a desperate search for whatever news sent the stock soaring 600%.)
I hope that this trade today wasn't anyone here as it looks to be an expensive lesson on placing market orders in an illiquid stock.
Recent Trades - All 3 today
Time ET Ex Price Change Volume
10:31:37 Q 0.3017 0.2587 350
10:25:05 Q 0.0679 0.0249 3,000
09:30:02 Q 0.06 0.017 6,000
Another Calculation
Sorry, I finally found some more information on the Alterrus system. There are 24 growing pots per tray. Each pot is ~ 142 grams (in terms of the microgreens/rooftop blend/vancouver special; as the salad blends are grown all together in one pot). And there are ~ 3000 trays in the rooftop system. Also it takes 18 -24 days for a growth cycle. So lets recalculate:
24 x 3000 trays = 72,000 products at a time. With 365/24 (to be conservative), we get ~15 cycles. So we get 72,000 x 15 = ~1.08 Million products. If each 142 gram product is sold ~ $2 per product, that gives a revenue of ~ $2.1 Million. This coincides with my initial calculation. If each product sells ~ $2.5 per package, then there is 0.5 Million more. Now if Vancouver's facility is able to achieve a large amount of demand, and expand their product to the second level, earnings will achieve $4 - 5 million a year. And I think that may not be too far off as they get the Epcot Center system built and potentially another system in Chicago and selling of a system in China. After another year of increasing revenue, they may be able to attract the necessary funding to expand their Vancouver facility (let alone use funds from a Chinese system to expand as well).
More Availability - Local Garden products are beginning to move outside Vancouver, with availability in Victoria, and as far as Kelowna (particularly the higher profit margin, microgreens). This should help boost the revenue. 2014 should be a good year.
Sad news, The Only Way is UP,
Terrible time of year to lose a job.
I expect everyone here hopes for the best for you.
Terry
Vancouver Foodie Tours, Eat Vancouver Blog;
http://foodietours.ca/local-garden-north-americas-first-vertical-farm/
Hello
Ahh well it is a cruel world we live in.
Due to unforeseen circumstances I am now looking for a position.
(An unpaid invoice for 12 months work)
My CV is on my web site www.localsalads.com
Also to see how you can light by using a 15 watt LED see my facebook page. https://www.facebook.com/pages/Local-Salads/144701455737404
I am open to offers if the position is correct and yes that Includes Alterras LOL ( Not that they would employ me.
So if anyone wants to develop the BEST Indoor vertical grow system
contact me on grahame@localsalads.com
Hi, Barunuuk.
Accouting
I am sure numerous accountants would have something to say about not believing these numbers. Yes, if an accountant wanted to commit fraud, and risk spending time in prison for falsifying then yes they could. However, the quarterly revenue and update provide much more anticipated news.
Revenue came in @ $210K with cost of sales at $323K. Also, with the closure of the UK operations, the burn rate (as specified in the update) will drop significantly. I am assuming that this is the $124K project development.
Now, with the micro-greens moving into Safeways, this could boost revenue much greater (as I mentioned before that the micro-greens have more profit margin). So lets look at the expenses:
Cost of sale: $323K
Project Development: $124K (should drop but also, stays relative the same as new facilities come up)
General Admin: $90K (Again, stays relatively the same as more systems are built
Interest & financing: $112K (Once paid off this is all profit, the current loan has been paid off ~$20K in this last quarter).
Non-operating items: $90K This deals with exchange rates, and with US operations this will even itself out with US installations.
So what we have is: $323K + $112K to break even in terms of operating costs in Vancouver. So if every facility generates revenue greater than ~$450K per quarter (and last quarter they were 1/2 there, not including the jump in customers and basil/microgreen sales) and maybe another ~$25K - $50K per facility for R&D, G&A Costs and additional principal payments from each installation, Alterrus has a viable business plan. If they pay off the loan, then the $112K is all profit, and presumably will be used for future expansions.
Another take: Take the system in China that they are in talks with selling (as well as royalties). This sale could provide funding for a another location, say Pittsburgh for example (or it could pay off the loan on the Vancouver installation, dropping their Vancouver costs to $323K). Moreso, with a partnership at the Chicago installation, even more revenue may be generated. And then there is the Florida installation (which is set to be complete by December) that may add even more sources of revenue.
If anything, I am feeling like my optimism has been greatly undervalued, and being realized more and more as Alterrus is putting its business plan into place.
Hi, Baranuuk.
Good monthly report. Getting in to Safeway!
http://cnsx.ca/cmsAssets/docs/Filings/2013/ASI_Monthly_Progress_Report_-_November_2013.pdf
Lowered losses?
It should be noted that Alterrus hasn't even operated a full year. They opened their facility a year ago, but as is with all start-ups (be it plants or facilities), it can take over a couple years to get bugs fixed, and the processes streamlined and to full potential. That said, they only started with revenue and customers back in March 2013, and it was scattered amounts at that. Since March 2013,they have 4 to 5 times the customers, they have more than doubled the products, and are continuing to grow their operation. Most start-ups take several years to reach profits. Remember, they are paying interest and principal back on a VanCity loan. So when and if they pay that loan off, that is now all profit as well. They are also funding R&D work that would be shared among every operating facility if more facilities in more cities are introduced. The fact that, in less than a year, they have achieved over 2/3 the revenue needed to cover the operating costs ($210K revenue vs. $329K ), I believe is very positive news. Also, I expect to see revenue continue to rise as they introduce new products (particularly ones with more margin; i.e. basil and micro-greens).
Morning, Barunuuk.
The Only Way is UP,
Very interesting but I would argue with the description of automation when produce is picked by hand, inspected by humans on an assembly line, etc.
We have some 40 blueberry bushes on our property that were planted - long ago. We once had crowds of people picking the berries but no longer. Too much bother I guess. The berries ripen over a lengthy period of time and there are different varieties with different ripening times. Commercial growers plant varieties that have an optimal harvest time and equipment is used to harvest. Unripe berries and various debris and bugs are separated by levitation in water. Takes a long time to pick a quart of berries by hand.
I wondered what was being planted in pots with a stick of some sort. Was that hydroponics material in the pots? Do they plant seeds or seedlings in the pots? Lots of questions but a great video.
An amazing video from Pennsylvania had happy cows milking themselves, even queuing up for the milking machine as the urge struck them. Previously the livestock complex had been a house of horrors. That is about the ultimate in automation.
Disease and pestilence, as well as exogenous bees, can be excluded with clean room procedures but with a large work force that would be prohibitively expensive without mentioning the exacting structural requirements and maintenance.
Altogether most enjoyable despite my persnickety commentary.
Best, Terry
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Alterrus Systems Inc. is an environmentally responsible, publicly trade company (CNSX:ASI & OTCQB: ASIUF) located in Vancouver, Canada. Alterrus has created a sustainanle vertical growing system, Verticrop, that grows fresh, nutritious leafy green vegetables in urban environments wher ethey are to be consumed. VertiCrop high density vertical growth system, technology that provides a solution to rapidly increasing food costs caused by transportation/fuel costs spiraling upwards with the cost of oil. Together with higher cost comes a reduction in availability and nutritional values in the food we consume. Using a fraction ofthe resources needed for traditional field agriculture, this patent pending technology generates substantially higher yields than conventional farming and was sleected by TIME MAGAZIN as one of the world's greatest inventions.
Developed over several years by Alterrus, the system is designed to grow vegetables and other foods much more efficiently and with greater food value than in agricultural field conditions. The VertiCrop system demonstrates the following characteristics:
Share Capital as of Dec 1, 2009
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Estimated Market Cap $1,052,526 as of Mar 30, 2010 |
March 23, 2010 | Valcent's AlphaCrop Prototype Is Operational | |
March 10, 2010 | Nike, U.S. State Department, Nasa and USAID-Sponsored Competition Picks Valcent as One of the Ten Best Companies in the World for a Sustainable Future | |
March 08, 2010 | Valcent's Smaller Vertical Growing System "Alphacrop"(TM) Received Strong Sales Approval From Its Master Distributor for the United Kingdom | |
January 26, 2010 | Robert Kennedy Jr. Presents Verticrop At Us Mayor's Conference | |
January 18, 2010 | Director Resignation | |
January 08, 2010 | Dubai Forum Presents VertiCrop Vertical Farming System | |
December 02, 2009 | Robert F. Kennedy Jr. Will Join Valcent's Advisory Board | |
November 13, 2009 | Time Magazine Names Valcent's Vertical Farming Technology as one of the Top 50 Best Innovations of 2009 | |
October 27, 2009 | British Parliament Backs Valcent's Verticrop (tm) Systems | |
October 22, 2009 | Stephen Kennedy Smith Jr EMLINK LLC Engaged by Valcent to Launch Verticrop in U.S.A. |
RECENT FILINGS
http://quicktake.morningstar.com/stocknet/secdocuments.aspx?symbol=asiuf
CONTACT
Investor Relations:
Email: cng@alterrus.ca
Address: 120 Columbia Street
Vancouver, BC
Canada V6A 3Z8
Telephone: 604-720-4223
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