Heartbeat...actually the lofts that just sold went for $129,000 and $139,000. Of which LFWK owns a 40% interest.
The Ambrose Project was purchased for $3.5M for building and the initial estimates were for $1.2M for renovation costs. Based on an avergae rent of $4,000 per commerical unit per month annuitized over 20 years I'd say the commercial units are worth at least $1.5M. Rents may be higher since it is in a good location. I'd estimate that about $200,000 of that $1.2M went towards renovation of the general building and commercial units. So my rough calculations put the average cost per loft at about $140,000. Based on PR's and some website information my guess is that the average sales price for the 21 lofts will come in around $160,000. So this project is netting about $20,000 per unit. LFWK 40% comes to about $8,000 per loft. So at the current market rate for LFWK it looks like they would have to sell 62.5 lofts to cover their value (several assumptions included).
So let's see...
Ambrose Project 21 lofts
Doctors Building 50 units
Frankfurt Project 140 single family units
Savannah Project (guess) 50 units
New Orleans (guess) 50 units
TOTAL: 311 units
That means IF LFWK maintains only a 40% interest and can expect the same results out of other projects versus the Ambrose Project then the market is valuing LFWK at about 20% of its potential or less.
5 x $0.003 = $0.015
My guess is that as the company adds additional projects in the future it will seek more of an interest, which means the price is even more undervalued. I'd say a $0.02 target is fair within the next 6 months.
