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Wednesday, 06/21/2006 8:59:57 AM

Wednesday, June 21, 2006 8:59:57 AM

Post# of 35
BLMC BARGAIN: COMPARISON WITH CKX & TPL

Previously, I was a major shareholder in CKX Lands. I liked the concept of a company receiving royalties from mineral rights, being a cash cow, and not having the exposure of significant expenses.

In my research, however, I found a gem that also receives its primary royalties from natural gas: Biloxi Marsh Lands Corp: BLMC.pk.

Both BLMC & CKX are similar to another company I was a shareholder in: Texas Pacific Land Trust (TPL). That stock has had a significant run over the past couple of years while both CKX & BLMC have languished. Yet, the concepts of these companies are nearly identical.

Unlike CKX and TPL, however, whose managements are passive, BLMC’s CEO is aggressively focused on maximizing shareholder value. In addition, on a comparative basis, BLMC’s P/E ratio, dividend yield, and underlying value, are dramatically more attractive as delineated in the comparison below.


Symbol Price Earn P/E Div YIELD CAP


BLMC $30.50 $5.35 5.7 $5.00 16.40% $84M

CKX $12.30 $0.83 14.8 $0.28 2.30% $24M

TPL $143.00 $4.21 33.9 $0.65 0.40% $308M

The dividend and yield on BLMC are based on the most recent 12 month period.
For 2005, the dividend was $3.25 and for 2006 to date, the dividend was $2.00.