Sulja Bros. Building Supplies, Ltd (SLJB)

[booger]

Best post of the day!!

Posted by: Maximyer
In reply to: None Date:11/14/2006 11:35:02 PM
Post #of 160641

Compendium for friends new to trading.

I put together a more basic compendium for my brother-in-law who has finally decided to look into SLJB. Better late than never.

He is new to trading, but smart enough to do his due diligence and wanted a jumpstart. So I put together some information that I thought was appropriate to his understanding of the stock market and afterwards, thought it might be useful for anybody who knows of someone who knows a little about trading, but you would like to see reap the rewards of investing in SLJB.

Check it out, see if you agree, and forward it as you see fit. It contains a little of my opinion in it. If I made a mistake, please let me know.


Hey Joe,

Here are my reasons for believing that SLJB’s stock price will go up:

Limited shares are available for purchase. Many shares are restricted and/or held by insiders.
Since SLJB reverse merged with Loftwerks, they absorbed the shorted share position of Loftwerks. When the price goes up significantly (like tomorrow?) the market makers who shorted Loftwerks know that they will eventually have to deliver the shares that they sold without actually owning them first. They will have to buy them at the market price when it goes up instead of the market price it would have been at if it had gone down. The difference to them will be enormous, and will be worse the longer they wait to ‘cover’ their shorts. This will cause a huge demand in shares which will add to the rise in price.
This company is different from most ‘Pink Sheet’ companies in that they are profitable and have been profitable for 25 years. When a reputable auditing company puts their stamp on the financials, a lot of doubt about this company will be relieved and hordes of investors will want a part of this company at this bargain price. The doubt about whether or not this is a scam is keeping A LOT of investors on the sidelines right now. The problem is that when the doubt is eliminated there will be a line longer than those at Disney World to buy this stock. The price will soar before anyone will be able to buy. I am willing to take the chance so as to get a substantial amount of stock at these prices. The CEO, Petar, has been around for a long time in other profitable companies. He is still part of and/or employed by some of these companies, and for this reason, I don’t think that he would risk all that he has going for him to be involved in a scam. Some of these companies now have a staked interest one way or another in the growth of SLJB. Furthermore, why involve a company that has been profitable for 25 years in a scam either?
Right now, no investment company in their right mind would recommend that their clients invest in this pink sheet stock, regardless of the growth potential. However, when SLJB achieves it’s goal of uplisting from the pink sheets, investment firms, hedge funds, mutual funds, etc. will jump all over this stock. They simply can’t recommend it while it is a pinkie. When SLJB uplists to the OTCBB and eventually the NASDAQ, it will be incredible to watch the buying of shares. Again, demand for shares will far outpace the supply and the price will rise dramatically. (This will happen next year, not this week.)
One of the biggest reasons for me to believe that this stock will go up significantly in price is that the company is worth a lot in the way of assets right now. They have also been very profitable. This is worth a lot to those who own a part of this company, a lot more than is reflected in the price of those parts. That will change when everyone sees the audit with the stamp of a respected, unbiased auditing company with their neck on the line, confirming what this company is worth.
I believe, after much reading, discussion, and research, that this company has been ‘sandbagging’ profitable deals. I think that once they have audited financials to help assure their reputability, they will begin to announce some of these deals. This will further drive their price up because they company will have a bright future towards better earnings than they already have. In addition to their already profitable business here in North America, SLJB is being brought in to provide building materials for the enormous construction projects going on in the Middle East, specifically Dubai. Read about this on Ihub’s SLJB front page called the IBox. I’ve seen the episode on the Discovery Channels show in the series called Mega Builders in which the building of these ultra luxury islands was featured. It’s incredible!!!

Here is some informative links on SLJB. It’s a lot to read, so I pretty much listed them in order of what I think you will find most useful and informative.

Here is some history in a nutshell through Aug. 8, 2006. Much more has transpired since, like the acquisition of Sam’s Building Materials. http://www.investorshub.com/boards/read_msg.asp?message_id=12929614

(if this one doesn’t work, let me know)

http://www.priinvestmentgroup.com/sljb.html actually, the same, or more, information can be found in this link http://www.investorshub.com/boards/read_msg.asp?message_id=14614182

Here is the company’s Proforma for 2007. Amazing expectations.

http://www.suljabros.com/pdf/proforma07.pdf

This math lesson assumed that the $350 million cement deal was landed (it wasn’t, but others are supposedly in the works). Just take out the $350 million, which is less than half, and cut those price targets by less than half to get an idea of why this stock is expected to go way higher once doubt is relieved.

http://www.investorshub.com/boards/read_msg.asp?message_id=13361860


Wessal to buy 25% stake in Sulja Bros in the open market, which means they are buying the stock that we are buying.

http://archive.gulfnews.com/articles/06/08/21/10061629.html


The contract with a tire recycling plant in Berlin.

http://biz.yahoo.com/iw/060517/0129924.html


Sulja Bros. website. When you go to the blog (if you really want to delve through all the investor’s BS), note that there are 2 blogs.

http://www.suljabros.com


Here is a list of notable and informative posts that someone (fdjr13, whom I respect) thinks that newcomers to this stock might find useful. You’ll probably find some duplication in some of what I’ve included here for you.

http://www.investorshub.com/boards/read_msg.asp?message_id=14548966


Here is a lesson on short selling of shares and what it means to this stock. Call me if you need any clarification, it will be easier to answer your questions than try to anticipate them and then answer them.

http://www.investorshub.com/boards/read_msg.asp?message_id=13656694


This is the latest good summary of some speculation as to what is happening with the stock price and what could happen (12 November)

http://www.investorshub.com/boards/read_msg.asp?message_id=14726000


Here is a July 31 press release summarizing SLJB’s financial position as of this summer. Not bad for a ‘Pink Sheet’ company.

http://biz.yahoo.com/iw/060731/0149129.html


Well, what do you think? It’s a lot to read, I know. I don’t exactly want to recommend that you buy this stock because we could all have been fooled. But, you know that I am in over my head because I think the risk is worth the possible reward.


Do what you think you should, but don’t wait too long. I don’t know when it will be too late to get in at these prices, because I expected that they would have already been through $.20 by now on anticipation of the AFs. Most people think that the reason it isn’t is because of the delays in releasing the AFs in the recent past. I hope that is the only reason and that that will be history by tomorrow night.


Call me anytime with any questions.


Good luck,


Robert



PS, whew, I’m done!