JMCP James Monroe Capital Announces Ethanol Plant Valuations and General Progress Reports
Business Wire - August 25, 2006 8:30 AM (EDT)
CHICAGO, Aug 25, 2006 (BUSINESS WIRE) -- James Monroe Capital Corporation (Pink Sheets:JMCP) has announced that its newly updated, larger, plants will sell for $1.6 million or more, and be worth $8 million in the stock market at a conservative P/E ratio of 20.
Diversified Ethanol's Taylor Moffitt said, "We are ready to produce hundreds of these plants, and if we have our way we will own a piece of every one of them, and entirely own several for ourselves. MGPI, an ethanol stock, is at a P/E ratio of 50 as of 8/24. At a P/E ratio of 50, just one of these $1.6 million dollar plants, which only costs us $800,000 to build, would be worth $20 million in a public, reporting company. Even if the market goes down 60%, we are providing a lot of value to customers, and revenues only get better when fuel costs rise."
The company recently completed the acquisition of Eagle Installation Incorporated. Former owner John Newby, supervising workers, has proven his worth. Newby completed 2 steel tanks, and already helped the company purchase several additional items of heavy equipment at fire-sale prices, including a crane, plasma-cutter, and several thousand pounds of other metalworking equipment for the construction and installation of hundreds of plants.
Bradford Funding is seeking buyers for A-paper, high-interest loans to Americans buying luxury homes in Central America. Companies wishing to purchase this should call Bradford Funding at 800-348-4419. Brokers will be protected. The company continues to receive demands for these loans from traveling Americans.
James Monroe Capital's affiliate program has produced many opportunities, and some of the shareholders have proven to be highly skilled businesspeople with excellent contacts in Costa Rica. The projects in Costa Rica have been the subject of local newspapers and local Internet researchers. This has resulted in a need to be discreet. Developer Dr. Jane's trip was delayed, but he says he is planning to travel soon.
The company has targeted select industries in which to focus its efforts in mergers and acquisitions. They include: ethanol production, ethanol plant manufacturing, ethanol ultrasonic R&D and licensure, Latin American development, gold/minerals, uranium processing, privatized governmental services, coal-to-liquid technology, and the financial services industry. As always, the company only buys at prices that are below market value. These target industries represent preferred sectors to pursue; they are not all being realized at this time, but being eagerly solicited by management. They represent diversification, and more importantly, opportunities for partners to own businesses together at bargain prices.
Diversified Ethanol, a division of James Monroe Capital, is still constructing its smaller plant, nicknamed "The Naysayer" in honor of everyone who's said they can't do it. The plant will be used as a demo unit for customer training, research, and development. The first research to be done on the plant is ultrasonic starch breakdown. Diversified Ethanol now owns patent rights and proof of inception on a specific type of ultrasonic starch breakdown, which costs very little, and quickly can extract 20% more sugar from the corn before it is cooked. This project is in addition to our ethanol plant production. Diversified Ethanol is procuring parts to build the first full-scale ultrasonic production unit, having done small tests successfully demonstrating the molecular breakdown of corn.
Moffitt said, "We are now trying to get our process patented, and have offered to partner with other research entities. 20% more sugar could mean $10 million dollars of profit per year on an updated 50 million gallon plant, and there are a lot of plants out there, and more to be built. We would like to have a piece of all of that, but this technology is less certain than the 3 year waiting list that now exists for parties wishing to build their own ethanol plant. R&D isn't always a sure bet, but going into construction when there is a 3-year waiting list, that's good timing. We are hitting this hard, and we have buyers applying for financing already." To get on the waiting list, please call Diversified Ethanol at 515-603-6292. The company is moving into its new headquarters, and apologizes for any disruptions in service.
This press release does not constitute an offer of any securities for sale. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the company's limited operating history and history of losses, the inability to successfully obtain further funding, the inability to raise capital on terms acceptable to the company, the inability to compete effectively in the marketplace, the inability to complete the proposed acquisition and such other risks that could cause the actual results to differ materially from those contained in the company's projections or forward-looking statements. All forward-looking statements in this press release are based on information available to the company as of the date hereof, and the company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
SOURCE: James Monroe Capital Corporation
James Monroe Capital Corporation, Northbrook, IL
Chris McGovern, 847-418-3848
Copyright Business Wire 2006
