$DREM Research Report
Dream Homes and Development Corporation.
A public company trading on the OTC Market.
A fully reporting company
DREM is a sleeper, a hidden gem. The company broke even in 2018 after losing money the prior
3 years. The losses in 2017 and 2016 were minimal compared to a loss of $160,000 in 2015. The
company had no revenues in 2015. In 2018 the company had revenues of $2.6 million. Presuming
the current operating track continues the company should again break even in 2019 or even make
a profit. The company appears to be on track to making money moving forward.
The company has been late in its filings with the SEC. This is a frequent occurrence in small start
up companies. However the company is catching up in its filings and appears to be on track to
become current early in 2019.
According to the numbers on OTCMarkets.com DREM has 25.9 million shares outstanding of
which 23.6 million shares are restricted. It has a tight 2.2 million shares that are free trading. The
company has no convertible debt and no conversions that could be an overhang on the market.
DREM is a real estate construction and development company with a division focused on offering
educational construction seminars, blogs and other helpful information to the public. Dream
Homes & Development Corporation is focused on the development opportunities in the central
New Jersey area, including home elevation and moving projects, demolition and new construction,
and developments for new homes and town homes. Since 2012, DREM has completed over 250
elevation projects, and the executive team has completed over 1600 new homes in 200 subdivisions
in New Jersey since 1993. At this time, DREM is the only fully reporting publicly traded SEC
company in New Jersey performing both elevation / renovation projects as well as demolition and
new construction. The company offers a full-service package to homeowners, including planning
and zoning approvals, architectural and engineering design, complete elevation and project
management services, and demolition and new construction. In addition to its elevation/renovation
& new construction divisions, the company has also contracted for and is in development with,
135 units divided over 3 separate subdivisions. These new developments include a 13-unit single
family subdivision, a 58 units townhome project and a 68 unit waterfront townhome project.
DREM management has positioned the company to have substantial revenue and thereby profit
from growth over the next few years. Seven years have passed since Superstorm Sandy flooded
40,000 owner occupied homes in the New Jersey area. While other builders have struggled to adapt
to the changing market and complex Federal, State and Local regulations and requirements for
flood hazard areas, DREM has excelled in the same and emerged as the trusted builder in the
region and become known as the “rescue builder” for home owners whose projects have been
abandoned by others. 30,000 home owners along the New Jersey coastline are now required to
elevate their homes. Management anticipates that the rebuilding process will occur over the next
15 to 20 years with an expected market value of $3.4 billion. The management of DREM
anticipates being able to secure a 5% to 10% market share.
DREM also has a subsidiary in Florida that is targeting opportunities between Naples and Cape
Coral caused by the damage from recent hurricanes. Its experience with FEMA requirements in
New Jersey should enable it to be in good stead in Florida.
DREM is in contract and in the approval process of a 7 acre tract of land in central Ocean County
in New Jersey. The company has also acquired a contract for the development and construction of
58 new townhomes in Central Ocean County in New Jersey. The acquisition was made for
common stock. The company projects that this will add $13 million to company sales.
The company has an educational and seminars division through which it offers rebuilding and
other informational material to homeowners and potential homeowners including those that have
been seriously affected by hurricanes. This is a competitive edge for DREM and provides it with
a stream of prospects and customers.
Along with the above DREM also has the opportunity to secure parcels of land through land
contracts and/or other types of options. This is in addition to the projects for elevation, renovation,
new construction that the company has under contract. Estimating a time horizon of 5 years,
management indicated in a recent 10K filing that this could result in $25 million to $50 million in
earnings to DREM.
DREM is a genuine sleeper in the OTC market, especially considering the small float, the non
existence of any convertible debt which could cause dilution and a favorable market position with
a steady flow of new projects and revenues. The current market price appears to be low relative to
its prospects. Look for substantial gains in market price in the coming months as more and more
investors become aware of the Gem.
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