Next event(s)
(if I am off base guys please feel free to jump in)
1) I have heard is a ticker change and number change which will make these shorts pay the piper, in the short term at least. But like a sexually transmitted disease I am sure they will be back at some point. They are the gift that keeps on giving.
2) Then as I understand it assets have been placed into the company and a release of financials is forthcoming.
3) There has been some talk around town that there is already in existence a master architect plan . It was on the local news that it was presented to a merchant association, but we have seen nothing of it. I am sure that is a huge event and will drive volume and price.
4) At some point there should show up a contract for the land. That asset would certainly move the price and the volume. I have a ball park figure of $15,000,000.00 from the land, but that is just an estimate we put together
5) I think these guys will be very creative in their financing as well. Besides the traditional debt to income ration on a project grossing $40,000,000.00 annual, these guys have been building real estate for some time and I expect they will have a creative team of tax attorneys, financial planners and accountants working on how to maximize the bang on this one.
One amazing product I was just told about recently is a premium life finance insurance policy. A CEO or Officer can take a life insurance policy on themselves. If they have a million dollars in assets they can take a two million dollar policy, and get one million in cash the same day.
These number crunching pencil necks have come up with a way to take out millions of dollars in life insurance policies and make the company the beneficiary.
Placing that money and a portion of assets into an annuity inside a non biological entity such as a trust and passing it on to the company makes all of the payout tax free.
In the event of expiration of an officer, or maturity of the annuity/ trust, the life insurance and other assets that have been placed inside this financial mechanism that have been building tax free @ ten year note plus 3% in addition to any other leverages/ financial tools used go into the trust which dissolves that money then passes directly to the company tax free.
The up side to the officer and his beneficiaries is this money hits the Outstanding Share Structure and jumps the price up. So if you are the CEO sitting on 200,000,000 shares, you have just passed on a powerful tool to your next of kin and taken care of them for generations.
Upside for the company and the share holders is you have increased net worth. As I understand it and it was told to me the maximum you can have for insurance is $50,000,000.00 in the United States.
While $50,000,000.00 is not record breaking money in the stock market, that combined with all of the other money the company has made and financially leveraged can put this over the cusp of small business to big business.
previous example...............................................
I believe that a water park, an Imax, a resort, the night clubs and all other things came out to be estimated conservatively at $40,000,000.00 total annual gross.
That number is still a very large income for a company. It may not be fortune 500, but $40,000,000.00 annual is darn good on an OS of 240,000,000 shares.
Even if it is a one to one ration of just the gross profit
$40,000,000.00 divided by 240,000,000 shares is .16667.
That does not include the land upwards of $15,000,000.00 estimated worth of the buildings $140,000,000.00 estimated
any other assets $5,000,000.00 estimated
Just a straight dollar amount of gross divided by the amount of shares if they build a water park, IMAX, and hotel.
200,000,000.00 financed over 15 years estimated (made up off the top of my head, I am not a loan broker) $2,000,000 per month in payments. Over 15 years equals $360,000,000.00 total payout to lender. ( Again I could be way off, I am not a loan broker)
60 million of this pays for misc cost, furniture, labor, food products that can be used over the 15 years.
Let’s say these guys half a brain and they put this $60,000,000.00 into an investment with the guys on their web site. Tax free bonds right now as I understand it pay 12%. 12% of 60,000,000.00 is 67,200,000.00
Year One: $67,200,000.00 -4,000,000 in labor/expenses= 63,200,000.00 remainder of capital
Year Two: $70,784,000.00 -4,000,000 in labor/ expense = 66,784,000.00 remainder of capital
Year three $74,789,080.00 – 4,000,000 in labor/ expense= $71,789,080 remainder on capital
Year four $83,773,849.60 -$4,000,000 in labor/expense= 79,773,849.60 remainder in capital
Year five $89,346,711.55- 4,000,000 in labor/ expense= 85,346,711.55 remainder in capital.
The point is this can be a tool, not a liability.
Now lets combine the basic example numbers here of 40,000,000 annual minus the 2,000,000 monthly payments over each year equaling 16,000,000.00 annual.
Over five years this resort can net $80,000,000.00 + the $85,346,711.55= 165,346,711.55 earnings
Earnings $165,000,000.00 estimated
land $15,000,000.00 estimated
Buildings $140,000,000.00 estimated
Other assets $5,000,000.00 estimated
five year total $325,000,000.00 estimated
Five years of payments $120,000,000.00 estimated
remainder of loan amount $240,000,000.00 estimated
Leverage with the right debt wraps, investments, holdings and accounting, this could be a very successful corporation.
I have heard there to be programs in Hedge Funds and other rather exclusive investment programs that can yield up to 25%. This would easily reach $200,000,000 in five years without a casino.
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With a small share structure that translates to a win/win for the company and the share holders.
This information is specifically geared towards public companies. I am sure these guys have very skilled and special advisors and council working with them. Not the usual hack jobs we see in Pink Sheet Land.
For those of you who are making the trip to Fort Wayne, I recommend a few places to check out.
1) Piere’s
2) Club Soda (good place to get the scoop)
3) Trolley Bar
4) Don Halls Gas House: (haunt of attorneys and legislators)
5) City Hall: 9th floor, ask them how many times they have met with Summit City Grand Resort and Casino Holdings Corporation.
That’s all I got for today, I am off.
Cheers and let’s make some money.
