QIN - Quintis [formerly TFC - TFS Corp] Sandalwood

[lewinsky]

Quietly pushing up as hopefully others see the potential of this for a re -rate.

This is one of my bottom draw shares along with RGD, TOX, and IMD.

Still looks undervalued to me.

[macduffy]

I've followed this one ( at a distance ) for a while now as it was a favourite stock of a newsletter that I subscribed to at one time.

I've never had a close look at the financials but I recently read a report from one of the Aussie freebies that pointed out that TFC, whilst showing good accounting profits, had in fact made very little cash profit over a period of, I think, 5-10 years. Not the end of the story of course and it may well be that the company is now poised to turn in some very good results.

Comments would be appreciated.

[lewinsky]

Hi MacD,

Your point is very well made, however I think this is a legacy of the previous reliance on MIS rather than wholesale sales.

Gearing last year was 19.5% and interest cover was 10.5 x

The Operating Cashflow was negative $25.1 mill but this was caused by settlements due after balance date.

They announced late September that Instutional sales had settled.

As I said in an earlier post, the Chairmans and Directors Reviews are worth reading from the Annual Report.

Like any forestry investment this has risks and do your own research on Sandalwood.

LEW

[lewinsky]

Announcement out today for half yearly result,which on first glance looks positive. however I will need a few stiff whiskies to get my head around this.

If any one has any comments, they would be appreciated.

The cncern for me is the operating cash flow for TFC, which is always -ve, yet they still pay dividends.

This may be typical for this type of operation,where they have presold timber and it is a timing issue.

Johnnie Walker may help to lift the clouds.

LEW

[Sauce]

Announcement out today for half yearly result,which on first glance looks positive. however I will need a few stiff whiskies to get my head around this.

If any one has any comments, they would be appreciated.

The cncern for me is the operating cash flow for TFC, which is always -ve, yet they still pay dividends.

This may be typical for this type of operation,where they have presold timber and it is a timing issue.

Johnnie Walker may help to lift the clouds.

LEW

Hi Lewinsky,

Haha, Johnnie Walker may help to lift the clouds indeed
If you polish off the whole bottle you may even be able to rationalise an investment in this dog!

This companies aggregate cashflows have been negative since inception. Where is the cash coming from? A quick glance at the shares on issue shows a doubling of shares in the last five years.

Raising capital to pay dividends and goodness knows what else?

Perhaps they were schooled in their 'ABC's' of finance at a certain group of Learning Centres.. if you know what I mean Lewinsky

Regards,

Sauce

[Joshuatree]

They finally showed some results from mature 19-23 yr old sandalwood trees recently(not TFC'S). Oil was 1.2kg per tree(spot price re $2000 kg) much greater than the 800 gms predicted and also re 25kg heartwood per tree,not sure what this is worth. Re another 500 hectares planting /selling/managing this year. Company effective ownership of 26.5% or 979 Hectares. 3788 hect planted 2051 hect avail.Due diligence on 8000 hect ongoing. First wholesale transaction with AAA rated U.S Investor for $20 million.Oil price has risen 18% per annum for 18 years. Just need the patience of a tree until first harvest ,a few years to go.

[Joshuatree]

I got my timing right on reentry for this one.TFC has finally turned a corner with first harvest to start in just a FEW days.

EPS up 140%
Cash profit up 223%
Finally a new non exec chairman
New sales to beyond carbon investors
Dividend reinstated
20% jump in share price
my rentry re 43c now 58c

[blackcap]

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I got my timing right on reentry for this one.TFC has finally turned a corner with first harvest to start in just a FEW days.

EPS up 140%
Cash profit up 223%
Finally a new non exec chairman
New sales to beyond carbon investors
Dividend reinstated
20% jump in share price
my rentry re 43c now 58c

well done Joshuatree. I am a long suffering holder too. I like the fact that cash flows are positive again. But this company is a puzzle. I mean EPS of 19 cents on a shareprice of 58 cents. There is more than meets the eye. But also good to see them post a profit after abnormals are taken out. I guess I do not know enough about the company but I do know that they were having cash flow problems a year or 2 ago and that seems to be resolved. THe big question now is... what is this sandalwood going to deliver once they start harvesting? THis could be a gold mine or it could be a steady earner. I like it that they are diversified in their field, as in have their own harvest but also sell blocks to other investors with upfront and ongoing fees etc.

[Minerbarejet]

hmmm, bit risky with trees and australian climate - could be worth a small punt especially paying a div and felling about to start. Theres an old one in the back of my head though - if it grows or flies forget it.

[Joshuatree]

Hope youre in the Black blackcap. Always been questions over how they value the plantations. New inde chairman is a huge tick. Big day today s/p jumped to 68.5c (my entry 43c recently) on good vol.

First harvest has begun on a rare substance in high demand for multiple uses.