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Thursday, 05/18/2006 5:16:11 PM

Thursday, May 18, 2006 5:16:11 PM

Post# of 35
Biloxi Marsh Lands Corporation is a huge investment opportunity for value investors. BLMC.PK has a web site: www.biloximarshlandscorp.com. Consider:

1. BLMC’s BALANCE SHEET

A. Land at Cost: $2.61 per acre. BLMC owns approximately 90,000 acres of land in Louisiana.
B. Marketable securities are carried at cost. Unrealized gains for 2005 total $1.6 Million.
C. Proved reserves are not included in these financial statements. See p. 2 of the Annual Report.
D. BLMC has no long-term debt.

2. Other Hidden Assets

A. BLMC has now received the complete data of the 3D seismic survey completed by Meridian Resources. This data covers 314 square miles including BLMC’s 90,000 acres.
B. Phase IV, which covers approximately 48 sq. miles of BLMC property, did not previously have a 3D seismic survey done. Phase 4 includes BLMC property encompassing the Tuscaloosa sand interval.
C. “Development of the deeper Tuscaloosa and Cretaceous intervals could prove to represent significant value” to BLMC. Meridian currently has a portion of this BLMC property under lease. Please listen to the question and answer portion Meridian Resource’s (TMR) quarterly conference call of May 9th. This conference call can be accessed by dialing 888-286-8010 and referencing conference ID #88586178 or can be accessed on TMR’s website at www.tmrc.com. I specifically inquired about the Tuscaloosa opportunity during that conference call. TMR management’s comments were enlightening. If successful, the Tuscaloosa opportunity could increase BLMC’s revenues exponentially!
D. The pipeline infrastructure running throughout BLMC acreage “and the right to use excess capacity and take over the pipeline after abandonment may prove to be valuable for future development of” BLMC mineral interests.”
E. BLMC’s possessory action (referenced on Page 3 of the annual report) has the potential of yielding “in excess of 28 million dollars.” The Louisiana Supreme Court recently ruled in favor of BLMC on the issue of title relating to such action. Note, however, that the State of Louisiana may have some claim to a portion of such proceeds based on water bottom rights. The annual report on the BLMC’s website does not include these details, but the annual report sent to the shareholders, which is more comprehensive and has this detailed information.
F. 82,000 acres of BLMC land are “open and available for exploration and development”. BLMC has “retained the services of a consulting geologist and two geophysicists to review and reprocess the 3D data ….”BLMC’s possession of the 3D Seismic studies and ability to identify additional prospects on BLMC property may enable them to receive royalties from future lessees in excess of the standard 25% due to this valuable data.

3. INCOME STATEMENT

A. Expenses are less than 7% of revenues. BLMC’s focus is on receiving royalties derived from leases on its land.
B. Salaries and bonuses are at reasonable levels.
C. During 2005, dividends distributed to shareholders were $3.25/share. “During 2006 (BLMC) intends to “equal or exceed the amount of dividends paid during 2005.” At current share levels, BLMC’s dividend yield approximates 10%.
D. Revenues for 2005 were negatively impacted by Hurricanes Katrina and Rita. Nevertheless, earnings for the twelve month period ending 3/31/06 were $5.35/share. Thus, the P/E ratio is 6.3.

Annual report data from 1998 to the present, quarterly reports, and press releases are available on BLMC’s web site: www.biloximarshlandscorp.com

This is the best value play I’ve ever come across. Any comments or observations.