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Chromcraft Revington, Inc. Message Board

  • argentuminvestor argentuminvestor Apr 19, 2013 12:41 PM Flag

    Revaluation

    Balance sheet as of 9/28/2012:
    Total assets = $31.2M (with PPE on the books at only $6.4M)
    Total liabilities = $13.5M
    Shareholder's equity = $17.6M
    Shares outstanding = 5.1M

    So book value = $3.45

    But the $6.4M of property, plant & equipment includes 1,000,000 ft^2 (23 acres) of warehouse, which probably sits on lots of ~50 acres. To buy this warehouse new @ $50/ft^2 including land at $25,000/acre would cost at least $51M. So the company is valuing it as 12 cents on the dollar. If there is value in the equipment, it is less than 12 cents on the dollar.

    I suggest that the PPE is seriously undervalued, with a more realistic valuation of $20M, which would give a shareholder equity of $6.12/share. No wonder Ron Butler keeps us in the dark (by delisting and delaying filing information), and then is suggesting that HIS group buy this company out a $5M, or $1/share, when it is probably worth several times that.

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    • I have not read anything about $1.00 per share. That number was just a suggestion by an individual.

      • 1 Reply to auburndale303
      • $5M divided by 5.1M shares outstanding works out to ~$1/share. From the press release: " The non-binding letter of intent and term sheet also contemplates a $5 million valuation of the Company with record stockholders receiving cash in exchange for each common share held based upon a final valuation amount and the number of shares then outstanding. "

    • You are way off on the new warehouse construction cost. It isn't $50/ft^2, it is closer to $100. Furthermore, the Senatoba site alone has 100 acres, not 50 acres for both sites. Using the new construction numbers, the new build price with $25,000/acre for 200 acres would be $105M, meaning that with zero equipment, the property and plant is valued at just 6.1 cents on the dollar!