Here is the latest from Rapholz in his Monday Morning Updates. It is an e-mail from a subscriber and obviously an owner od UNICO. Take it for what it's worth. I deleted the names of the person who wrote the e-mail.
----- Original Message -----
From: "Economic Advice" <economicadvice@bellsouth.net>
To: <economicadvice@bellsouth.net>
Sent: Monday, December 04, 2006 12:18 PM
Subject: Maybe the best investment of a lifetime!! / Economic Advice
>
> Please see the below email that I received from a long time subscriber
> and my response to him.
>
> James Rapholz
>
>
>
> -----Original Message-----
> From: a subscriber
> Sent: Saturday, December 02, 2006 4:55 PM
> To: Economic Advice
> Subject: Maybe a blurb in next months letter???
>
> James,
>
> I did some analysis on Unico. Christ, can this be right? I know they
> did a reverse split and the stock has dropped like a rock. But if what
> I found is true, the value is astronomical????? Maybe next month you
> could write a short blurb about this revaluation of opportunity since
> the reverse split?
>
> * Looking at their info on website "2002 mine resources estimate" and
> applying current metal prices to the quantities posted I come up with
> approx. $1.25 billion
>
> * I called their investing contact and he informs as of Oct 12th, 2006
> there is 183 million shares of unico.
>
> *Thus, 1.25 bil / 183 mil = $6+/share. What is the realistic price to
> achieve on this. I'm assuming its not $6/share. Some of it has to get
> eaten by operating costs? And it all obviously won't come out of ground
> at once time.
>
> * Current stock price is selling for $0.0063?????????????
>
>
> This sure seems like a bonifide opportunity for the average guy to get
> way ahead in life!!!!!!!!!!!
>
>
> >
> My Response:
>
>
> Hello,
> What you are questioning is Price vs. Book Value:
>
> Book value is a measure of a company's assets minus its outstanding
> obligations, which in Unico's case are negligible.
>
> If a company's shares are worth $2 Billion and its book value is $1
> Billion, then it is trading at two times book value.
> The S & P 500 currently trades at 3.1 times book value, so if you'd like
> to use that number as a reference point, Unico should be trading in the
> vicinity of $18.60 a share.
>
> Therefore, either the shareholders who sold their stock and drove the
> price down didn't realize the value of what they owned or the company is
> not being managed in a way that maximizes shareholder value!
>
> In any case, I'm glad that you are rolling up your sleeves and doing a
> little research work. That's how real money is made and if you stay on
> target, you'll probably make yourself a rich man.
>
> The best of luck to you,
> James Rapholz
>
>
>
>
>
>
