realest; I have been told that the Memphis hotel does very well and one other tidbit. Apparently there is a hotel very close to ours that just sold for 4.5M. It has less rooms and no restaurant. You are from that area could you check into it. I believe we got that hotel for less than 2M so our equity in that hotel has gone up by 3M. That is a good thing! I understand we are 51% owner but that is still close to double equity compared to our present market cap!
The country club is an interesting option. Last I heard they were considering a gated housing community. Eelfland had reported there was a gated community in the near area that the lots sold out very fast. We may be better off developing the land, selling the lots for a profit and own the CC free and clear. With the new housing in the area on the golf course I would hope those people may want to become members. I think they will go semi-private and still have golfers paying greens fees as well.
The problem with the restaurants is IBAC does not own the land or the buildings. As Ed said we got tables and chairs. The restaurants generate approx 15% profit. It is prime season in Florida and IBAC is selling at a prime time. Ed wants assets, land etc. and that is why I believe he is spinning off the restaurants etc.
Now the spin off. I have concerns here as to me the devil is in the details. I believe the spin off will yield money and shares in the company buying the restaurants. I have no information here but reading the PR I believe IBAC will keep most if not all of the money and will give the shares in the other company to the shareholders. They will use the money to renovate the CC clubhouse and also improve the property for houses. The interesting part is no officers or board members are going to get any of the shares per the pr. Say it is half cash and half shares. That would be approx 2.25 million dollars and the same in share value of the other company. The share value would be .01 per share of IBAC stock. 225M shares divided into $2,250,000. So it then depends on what the shares of the other company are trading at. Have no idea what that is but if the shares in that company are trading at .01 then we would get one share of that company for every share we own. I have been told that the other company is a pink sheet company. The value to shareholders is worth .01 per share in that example. That is 4x what we are presently trading at.
Now for the reverse merger with the assets. Country club and hotels generate revenues and have a positive balance sheet value. We would have solid assets and they should be trading at least at this level. Again we would own the CC free and clear, 1.5+ million equity in Memphis and some equity in Royal Ark. Also have the equity in the CC. Then it is on to the next deal and the one after that. Building a solid company with true dirt assets. Don't know what that will trade at but it will be fully reporting OTCBB and that helps. They will have to post AF and quarterly reports and that helps.
That is why I have bought a bunch down in this area. When I say a bunch I mean a BUNCH!
Sorry it is so long but you asked!
Hoping for a prosperous '07 for all!
Binzur
