I'm out, page-28

I see BFC as ridiculously undervalued stock. Wait I'll try to prove my point here in short.

I had evaluated this stock some time ago but then didn't acquire any. Last year.

The I saw something strange, the Chairman keeps loading up at market price. Why did he kept buying , I sat wondering. Then I decided to run some basic numbers.

By being very conservative lets work out what this firm is worth should a receiver be appointed. I'm not suggesting this, but I'm trying to be conservative. Actually unrealistically conservative.

This is just a quick summary, not detail. Detail is even better. Their net asset based on their recent balance sheet is $143.6 millions and their liabilities or payables is $12.17 millions. So their net assets is $131.43 and let say BFC lost another 7 million this FY as well ( which it won't at all ) and lets even say that someone erases OZIRIS technology from their computers ( which won't happen as well ) then balance sheet carries $0 in technology (now $11 million) ( Could be worth more than $10 million ). The land and diary farm which has significantly higher value due to it becoming income producing asset. If you use GIS software and map the land and work out value of it, then work out the value of the factory, you'd see a good number, so I worked out the value of land and now made some phone calls to see what it could be worth, I was surprised. I'll put that hidden value at $50 million (fire sale scenario), which I like paying $1 for coffee in street cafe in Sydney CBD, where they charge you $3+ easily and $1 will make people queue for it. So the NTA become (143.6 - 12.17 - 11 - 7 + 50 = 163.43)

so the NTA for me was $163,430,000 / 427,292,163 = $0.382 / share
Even by being so conservative and pessimist I got 0.382 and that doesn't factor any income produced.

I pulled the buy trigger at 21 cents.

Yesterdays presentation showed the value at 70 cents, now you know how conservative my estimates were. I'll revisit this after 60 cents again.