Our February Investment Review in Mount Dora.
We reviewed how the history of the Dow and the dollar have come together to favor alternative investments such as commodity based currencies and investments. Sandalwood was one rare commodity we examined.
An analysis of the only public company in the world with sandalwood plantations is TFS Corp. which showed that it has the potential for 1,000% appreciation in the next ten years.
The Australian analyst who visited the site wrote that in a decade TFC could be generating sustainable Earnings Before Interest, Taxes, Depreciation and Amortization A$400m from harvesting its owned plantations, harvesting and value-adding Managed Investment Scheme investors’ harvested wood and from new establishment fees. The calculations imply a potential A$10 share price offering. The price yesterday was A$1.06 a share so a rise in ten years would equate to a 1,000% appreciation.
This type of potential reward is not without uncertainty. The analyst points out that time frames involved as to when the market will appreciate the coming substantial uplift in profitability are uncertain. They also recognize the big question I have which is “What will the added supply from this plantation do to the price of sandalwood?”
An added benefit to investing in sandalwood is the potential growth of its essential oil as it has great medicinal qualities. Sandalwood is already accepted as a medicine in Germany. If health care costs rise… the demand for sandalwood may increase as well.
Group Health Cooperative at GHC.org has a team that for over a decade has combed through thousands of research articles published in reputable journals. That team’s goal has been to help readers make educated decisions, and to better understand controversial or confusing supplements.
Here is what the GHC.org site says about Sandalwood as a herb that directly attack microbes.
Traditional Use (May Not Be Supported by Scientific Studies)
Sandalwood oil was used traditionally by herbalists to treat skin diseases, acne, dysentery, gonorrhea, and a number of other conditions.1 In Traditional Chinese Medicine, sandalwood oil is considered an excellent sedating agent.
The volatile oil contains high amounts of alpha- and beta-santalol. According to a test tube study, these small molecules possess antibacterial properties. This makes it a potential topical treatment for skin infections. Synthetic sandalwood oil does not contain these active ingredients.
Internal use of sandalwood is approved by the German Commission E for the supportive treatment of infections of the lower urinary tract (usually the urinary bladder). The German Commission E monograph suggests 1/4 teaspoon (1–1.5 grams) of the volatile oil for the supportive treatment of urinary tract infections. This should only be done under the supervision of a doctor. Treatment should not exceed six weeks.
For external use, a few drops of sandalwood oil are dissolved in 6 ounces (180 ml) of water and applied directly to the infected area of skin several times daily. You can see a link to the entire GHC.org site below.
How to Buy TFS Corp. Shares
Most US or Canadian brokers who can buy Australian shares for their clients should be able to purchase TFS corp. shares. Readers who use the ENR advisory service to Jyske via Canada can purchase them as well. I checked with Thomas Fischer at ENR Asset Management and he wrote: Hi Gary, I spoke with Jyske Bank this morning and the equity is already registered in the Jyske Bank system and clients can thus buy this stock through Jyske Bank. Thomas.
You can get more details from Thomas Fischer at Thomas@enrasset.com
How to Learn More about Sandalwood Investing
You can research this business on your own (the company is called TFS Corp. and it is listed on the Australian Stock Exchange) or to save you endless hours and numerous calls to Australia you can order the report at Amazon.com.