I'll be taking three groups to Ecuador this winter. We will see opportunities like this where we can gain hundreds of percent in profit overnight!
Dear International Friend,
Here is another message from eClub advisor Andres Cordova showing how incredible opportunity is opening in Ecuador.
I believe we may have come across a very interesting investment possibility.How about owning 84.4% of a $27.3 million Dollar in assets company, for $4.3million? (the net worth of the company is of $16.6 million, if we take intoaccount its current debts)
Out of the $4.3 million required to purchase the farm, $2 million woulddirectly go towards a capital increase in the company during this year, and$1 million for a capital increase next year. So the actual price to be paidoutside, so to speak, for the ownership of 84.4% of the shares of thecompany is of $1.3 million, the rest goes into the company.
It is a company founded in 1979, which has 10.700 hectares (26.429 acres).Its in the African palm oil business. It appears to have some processingfacilities too.
According to an audit by Price Waterhouse Coopers, the farms averageproductivity per hectare was above that of the rest of the Country.
It appears that a considerable percentage of the planted area, which I thinkaccounts for half of the land they own, is about to begin production.
This company was part of a large conglomerate here. The farm supplied palmoil to processing plants and manufacturing companies within theconglomerate. When the conglomerate was sold to foreign ownership ( a recentevent) the until-then owners of the conglomerate compensated the manager ofmany years by giving him the farm, for it appears that he had made themmillions.
The farm is in need of a raise in capital, and because of this and of theabove stated, the current owner would be willing to part with a majoritystock, if somebody invests in the farm. This investment will allow the farmto grow and prosper and he does not have the money right now, so his 24%will be much more valuable in the future, if this investment is made.
It is a large, well known company here. Apparently the 10.700 hectares haveroad facilities and good infrastructure.
According to financial projections of the company, taking into considerationthe payment of its debt in a short six years, important profits should beginby 2005, with huge leaps in profits from there on.
By 2008 the net profits before taxes are projected to be $4.4 million, withprofits of $8.9, $13.4, $18.3, $23.75, $29.4, $35.5 and $42 million, in2009, 2010, 1011, 2012, 2013, 2014, and 2015, respectively.
Of course, this is what the company predicts, but if there is a hint oftruth, it seems like a very worthwhile endeavor.
I still have several questions and doubts. The owner of the company is goingto come by our offices this next Monday and I we shall sort out a few thingsthat are not yet clear to us.
If any interest should warrant it, we would do a thorough investigation andreport. An independent auditor may be hired. The would be owner may come orsend somebody to inspect things.
In any case, should the elements we are managing be correct, it would be avery interesting and rare opportunity.
Let me know what you think.
There are numerous deals like this in Ecuador. Tomorrow I'll show you one with even greater potential! But they do not come free. For every ten deals presented, maybe only one will work and only after thorough investigation of all ten! However for those who are looking for adventure, an exotic lifestyle at bargain basement prices and really outstanding profit potential, Ecuador is a place to be.
Until tomorrow's message on an Ecuadorian teak plantation that shows a 4000% return, good global business and investing!