Replies to post #30066 on Phoenix Associates Land Syndicate (fka PBLSQ)

[beerthirty]

MrP you spend alot of time postive negative opinions on a stock that is trading under a penny, what gives?

[Russian-Trader]

Victor, Victor, Victor, I know you probably spent a lot of time trying to come up with this information to try to prove your point, and I will give you an E for effort. However, we are not talking about whether an asset is considered a "current assets" or not. We are also not talking about taking "impairments" which you used as an example of "fair value". That was last weeks lesson to you, and I'm glad you finally realized that point and agree that "fair market value" can be used to show the true value of an asset.

We are now talking about the use of "fair value" in the assessment of the value of minerals. In this paticular instance PBLS rents the land and has the rights to the minerals in the ground. They also pay a royalty for what they mine. Sand and gravel are products of the pit and are considered Murphy's inventory, which BTW, is a "current asset" on the balance sheet. Since the rent and royalties are written off as an expense, there is no "at cost" amount to be placed on the books to be depreciated. Nobody knows for sure what the quantity or quality of minerals will be nor what the future price will be. That is why they are carried at "fair market value". In this case the assets in the pit were assesed to have a "fair market value" of $266m at the time assesment was done. PBLS only accounted for 10% of that assessment which is very consevative.

There is no twisting here, just the facts. I'll leave the twisting to you and continue to prove you wrong.

Here is an article that may help you understand what I am talking about and like I said before, you need to stop thinking 60s and 70s accounting practices.

http://www.iasplus.com/agenda/fairvalue.htm