Extreme Biodiesel Inc (XTRM)

[UncleBilly]

In my 20+ years of investing, I've never seen a company better positioned for growth and massive % gains than $XTRM North Star Homes.

Right Business: Home building is the hottest sector (besides tech) right now as millions of people flee cities for livable suburbs. The Work-From-Home Revolution is just starting and Toll Brothers CEO recently said it is the best time for home builders he's ever seen in his 30 year career with Boise being the hottest market.

Right Place: Boise area is the #1 growth market for residential real estate. Demand is outpacing supply. Red tape is being cut and building permits expedited. New data from Boise Regional Realtors shows housing in Ada County (where XTRM builds) broke several records during July.

Right Time: Demand for new homes is at an all time high while supply is at an all time low. Record high of 1,402 homes sold. 22% increase from July 2019. Homes in Ada County are also costing more. Last month saw an increased median home price of $390,000. That's an 11.7% increase from July 2019 when the average price was around $349,000. That $390,000 is also an all-time high for Boise Regional Realtors since it began tracking home market metrics in 2004.

In addition to being in the right business, in the right place, at the right time, $XTRM is severely undervalued and underestimated. The stock price has been manipulated on low volume for weeks. TDA shows a market cap of 1.04M while OTC Markets puts it at 8-9M, both of which are preposterously low. Here's why:

*CURRENT REVENUE: XTRM acquired North Star Homes in late November 2019. In the first 10Q after the acquisition, we see $2.5M in revenue and very little debt. The only note holder was Rachel Cook (a realtor selling more homes for the company than the note is worth so she's friendly debt - great early stage investment by North Star to get involved with Rachel, who is well connected via Epic Realty - heavy hitters in Idaho real estate).

*FINALIZED CONTRACTS/10K: Since then, the company has reported 22 homes sold this year with 8 more under construction (this was all done during a pandemic when most businesses were shut down). The upcoming 10K is going to cover approximately 6 months worth of sales and its still going to be an absolute MONSTER. I also expect an addendum to cover "Subsequent Events" so we can see sales from July, August and maybe even September. An 8K with name change/symbol change along with summary of material contracts would also help to add value for shareholders and give new investors a clearer picture of the company's status.

* PROJECTED REVENUE: The company projected a minimum of 50 homes to be sold in 2021 (that's without counting the 214 lot Caldwell Project that closes this Fall). They secured FINALIZED CONTRACTS for $20-25M worth of builds for 2021 in August of 2020 - are you kiddin me bro? That's incredible stuff. They don't even have to get Caldwell and the share price would still be at a dime.

* BIG DEAL: Cirrus Pointe, Caldwell - the big behemoth that will take XTRM North Star Homes to the Next Level. 214 lots with homes starting in the $300,000s but likely averaging up much higher as the uptrend in home prices continues puts them at over $100M+ in revenue. Share price can be at 50 cents or more by Thanksgiving.

The stock has a great share structure and will fly north with any type of buying pressure.

*AREAS FOR IMPROVEMENT: Its not all sunshine, rainbows and lollipops though. North Star in in the best business, in the best location, at the best time but the company has some of the worst PR/communication skills I've ever seen. Gotta call it like I see it.

Everything is lined up perfectly for them if they adapt to modern times and take advantage of social media to promote and highlight their incredible homes. For example, every other publicly traded home builder company has a social media presence so the excuse that they're an "old school home builder accustomed to being in the private sector" doesn't work.

People invested their hard earned money into the company after the last PR and they've seen a lot of red - there's no reason for it and management must be accountable for their failures as well as celebrated for their incredible successes - seriously, I can't get over $20-25M in finalized contracts already locked up for next year. It's an unbelievable accomplishment, especially during the pandemic, but its time to grow up and become the "best in class building company" they assert themselves to be. The quality of the homes and sales must be presented in a way to attract a new INVESTOR base to get the share price to a healthy level - especially since they want to uplist to OTCQB (requires .01 for 30+ straight days) and eventually NYSE.

Looking forward a great month of growth in September for $XTRM North Star Homes.


SOURCES:

Toll Brothers CEO says he’s seeing strong housing market across the board: https://www.cnbc.com/video/2020/08/26/toll-brothers-ceo-says-hes-seeing-strong-housing-market-across-the-board.html

"Ada County Housing Market Sets Records for High Prices, Low Availability" https://www.ktvb.com/article/news/local/growing-idaho/ada-county-housing-market-sets-records-for-high-prices-low-availability/277-580b4814-6866-4b43-b9b9-a1f474fb2aac

https://www.otcmarkets.com/stock/XTRM/security

https://www.otcmarkets.com/stock/XTRM/disclosure

https://www.otcmarkets.com/stock/XTRM/news