Boulevard Holdings, Inc. established and incorporated on July 13, 1994, is a holding company with its primary interests in the following businesses: ownership of companies involved in the development of hotels and resorts & tourism-related businesses and investments in strategic land locations & rentable real estate properties. BHI subsidiaries are significant market leaders in their respective market niches for their products, catering to premiere and elite clients to maintain relatively higher profit margins. The ambition of BHI is to expand its eminently reputable Friday’s Hotel brand to at least 9 different idyllic locations throughout Asia in the following 10 years. The company has also determined to create long term value by increasing its capitalization, entering into JV’s for tourist destination development and commanding a significant share in the primary resort home market outside Metro Manila, especially with current government decongestion efforts to improve travel time via ongoing highway construction.The company uses fiscal year ending every May 31 for its financial results. It has goodwill in its books under Other Non Current Assets.
SNAPSHOT
| # of shares outstanding: | 7,966,853,408 |
| Current Price: | .147 |
| Stockholders’ Equity | 1,261,234,702 |
| Price to Book Value Ratio | .93 |
| Price to Book Value (Appraised) Ratio | .289 |
| P/E Ratio | 133.64 |
| ROE | .6 |
| ROA | .7 |
| Free Float | 41% |
FINANCIAL RESULTS
| | 2011 | 2010 | 2009 | 2008 | 2007 |
| Revenues | 144.3M | 153.6M | 152.4M | 165M | 148.2M |
| Cost of Services | 63.9M | 75.2 | 74M | 76.9M | 72.5M |
| Gross Profit % | 56% | 51% | 51% | 53% | 51% |
| G & A Expenses | 47.1M | 49.7M | 50.1M | 50.5M | 50.7M |
| Net Income/(Loss) | 8.4M | 4.4M | 26.9M | (7.6M) | 27.3M |
| EPS | 0.0011 | 0.0006 | 0.0179 | (0.0051) | 0.0182 |
| Book Value | 1,191.1M | 1,192.7M | 303.4M | 286.6M | 294.2M |
| Book Value (Appraised) | 3,833.4M | - | - | - | - |
| Stock Price | 0.069 | 0.060 | 0.110 | 0.150 | 0.280 |
| Book Value Per Share | 0.1588 | 0.1590 | 0.2023 | 0.1911 | 0.1961 |
| Book Value (appraised) Per Share | 0.51 | - | - | - | - |
| P/E Ratio | 62.7 | 100.0 | 6.1 | (29.4) | 15.4 |
| Price to Book Value Ratio | .4 | .4 | .5 | .8 | 1.4 |
| Outstanding Shares | 7,500M | 7,500M | 1,500M | 1,500M | 1,500M |
| Total Assets | 1,386.7M | 1,368.0M | 441.0M | 455.8M | 492.8 |
| Stockholders’ Equity | 1,261.2M | 1,262.9M | 373.5M | 286.7M | 294.2M |
| ROA | 0.6% | 0.3% | 6.1% | (1.7%) | 5.5% |
| ROE | 0.7% | 0.3% | 7.2% | (-2.7%) | 9.3% |
DEVELOPMENTS
AUG 15, 2012
v One of the country’s premier conglomerates bought 4,000 hectares of land in the towns of Naic, Maragondon, Indang and Ternate Cavite. The conglomerates objective is buy 10,000 hectares to build a duty free seaport, residential and industrial district, and an airport. This will benefit BHI and Puerto Azul as long as the conglomerate does not build a power plant in Manila Bay.
v The Cavite clans have upped their price of land from 150 to 300-350 per square meter. Some have even upped their price to 500 per square meter.
v Mid Market Residences – will be located in flat lands.
v Up Market Residences, coastal commercial and entertainment developments – will be constructed in Puerto Azul’s 8 kilometers prime coastal frontage.
v Aecom, BHIs master planner went to Hongkong to evaluate further the potential of Puerto Azul over a ten year period for the first 1,100 hectares. They will be back on October to discuss the progress and meet with BHI and Jones Lang to discuss the right direction with potential JV partners.
First 1,100 Hectares of Puerto Azul
Private Owner’s Member’s Cove – beach club, tourist hotel, beach dining, condo residential, spas and hot baths, gardens, leadership and teambuilding. Target foreign investors/ repeat investors interested in expanding the upscale resort residential market.
Paniman Branded Resorts – community retail, member shares, branded villas, upscale resorts, natural attractions/farms, memberships-golf, and wedding parties. Target local developers / investors knowledgeable on the resort residential market bringing in popular local brands – premier and upper mid market. Targets families, weekenders and long-staying guests.
The Wharf - town center, marina rde, boutique hotel, residential walkup. Targets the common Juan & Maria who will come to Puerto Azul to eat, shop, stay overnight and create a steady/ sustainable market and make PA a popular destination.
Palicpican People’s Cove – tour boats, water park, events/parks.
Roadside Adventures-warehouse club, bed & breakfast (b&b), roadside retail, farmers market, natural recreation, entrance to the resort, roadside market and dining. Provides overall support for the broad Puerto Azul mixed market through Bed & Breakfasts, roadside retail, nature activities, family activities, shopping and just getting out of the town.
Mountainview- themed hotel, meeting facilities, corp housing, 2nd hotmes, treetop walks/courses, wellness/retreat, study tour and culture. Exclusive 2nd home community and hotels for corporate and private functions.
JUN 27, 2012
v Appoint Aecom Singapore Pte Ltd to provide consultancy services for Puerto Azul Master Plan Review & Update for US$230,000.00; and Aecom Economic Analysis for US$140,000.00
v buy out of Friday’s Holdings, Inc.’s minority stockholdings
JUN 19, 2012
v BHI and Cala Paniman signed a contract with Jones Lang LaSalle as marketing advisor. The contract involves the exclusive marketing of Puerto Azul properties to attract and engage qualified partners and investors who will expand and develop Puerto Azul in cooperation with, and under the terms and conditions acceptable to BHI and CPI. This covers an area of approximately 3,000 hectares located in the municipality of Ternate, Province of Cavite, Philippines.
MAY 30, 2012
1st Growth Leg – expansion of Fridays Resort chain
v BHI intends to buy out the 23% it doesn’t own in Fridays Bora; 2) purchase more land for Fridays Boracay; 3) probably jv or purchase a Boracay spa brand. In all cases, Bhi will enlarge its Boracay footprint, because it predicts the destination to remain number one for some time.
v Fridays Boquete Beach at Puerto Galera. The property will have Phase 1 of 32 keys completed by February 2013 next year, almost 75% the size of Fridays Boracay. It shall be the premiere hotel in that destination, just 2.5 hours drive & boat from Manila with Slex now connected to Star Toll to Batangas Ports. Full build out is for 62 keys. The ongoing construction is managed by British-led, LEED-certified global construction consultants, Davis Langdon & Seah (DLS). The architects are from the Maldives, while local architectural review and full interior design is by Palafox Associates.
v Bhi has around 55 million in cash and money market instruments, and is expected to receive from shareholders another 130 million pesos over the next few months to pay for the second Fridays hotel. It shall keep development at USD$140,000 per key versus Asia resort average at $420,000. So far, it has no bank debt.
2nd Growth leg – Puerto Azul (30% stake)
v Aecom advised BHI to concentrate in PA where the money is: the hotel residence sales adjacent to the hotels, whether Fridays or other brand.
v Koreans are the mainstays of Puerto Azul’s golf related activity.
v For the Puerto Azul job, a much bigger undertaking, Bhi shall locate two Fridays resorts within, but also draw cash from sales of residences (built through subsidiary Cala Paniman, Inc.) to be managed by the hotels. This is a conservative no debt, sure growth stance the way PA is located and with infrastructure going its way. Bhi and PA could hopefully improve the outlook when the right investors finally sign up, which task Bhi soon will leave to its marketing agent.
v Discussions with Resom are deferred until Aecom can come up a plan that can accommodate them. BHI wants all offers to be in writing. Large Korean projects have a high failure rate around Asia. Property must have varieties of hotels, residences, and activities that will cater foreigners and locals.
v Exploratory talks on shouldering the market research costs with the proposed Cavite airport planners. Travel time will be 30 minutes only from the airport. EO 629 has an effect on this airport also.
v The tunnel through PA to Nasugbu, Batangas is now cemented throughout and will be dried out for a tentative Presidential Ribbon cutting Aug 1 or Sept 1.
v render marketing and financial representations in behalf of the Puerto Azul Complex valued at 13.5B over 30 years
MAR 5, 2012
v JP Guilds subscribed to the private placement made by BHI at 100 million pesos. BHI maintains the growth policy without availment of bank debts.
FEB 16, 2012
1st Growth Leg – expansion of Fridays
v 1 Fridays Resort hotel per year
Ø Boquete Beach, Puerto Galera (completion Nov 2012)
Ø Paniman Beach, Puerto Azul (start Feb 2013)
Ø Moalboal Beach, Cebu (start Feb 2014)
2nd Growth Leg - 3,000 hectare Puerto Azul
v 30% share for any business generated in the property
v benefit from the Cavitex over the sea
v Ternate-Nasugbu tunnel
JV structure – Jones Lang LaSalle Leechiu
v 3.5-7.25 months (meeting with potential partner to contract signing)
v 12 months (meeting with potential partner to selling of properties)
FEB 10, 2012
v Purchase of Cala Paniman for PhP100M payable in 7 years
v 30-year joint venture pertaining to the 3,000 hectares Puerto Azul Complex of JP Guilds with overage share for BHI of 30%.
v Purchase of parcels of land located in Moalboal, Cebu with 353,810 sq. m. for P707,620,000.00
v Purchase of 729 sqm beachfront parcel of land, a building, machinery, furniture and fixtures at Sitio, Pinaungon, Barangay Balabag, Boracay Island, Malay, Aklan at the purchase price of US$1,312,000.
OCT 11, 2011
v Failure of BHI to close the Resom Resorts deal is disclosed. BHI offered P4.7M per month for the developed Palicpican valley of 77 hectares.
| LANDS | |||
| Particulars | Location | Book Value (Php) | Appraised Value (Php) |
| 4,616 sqm @Php99,588.48 | Boracay-Aklan | 21,806,407 | 532,300,426 |
| 729 sqm @99,588.48 New | Boracay-Aklan | - | 72,600,000 |
| 7,038 sqm @Php31,700 | Boracay-Aklan | 33,248,156 | 223,104,600 |
| 4,663 sqm @Php14,705.88 | Puerto Galera | - | 68,573,518 |
| 3,743 sqm @Php14,705.88 | Puerto Galera | 50,000,000 | 55,044,109 |
| 1,066,012sqm @Php1,792.56 | Paniman, Cavite | 900,000,000 | 1,910,890,471 |
| 353,810 sqm @phpP,500 | Moalboal, Cebu | 707,620,000 | 1,238,335,000 |
| TOTAL | .51 per share | 1,712,674,563 | 4,100,848,124 |
| CONDOMINIUMS | |
| Name | Particulars |
| Asian Mansion II Condominium | For Lease |
| LPL Greenhills Condominum | For Lease |
| Burgundy Corporate Tower | For Lease |
| Peak Tower Condominium | Office of BHI (Unit 1704) |
| TOTAL | 63M Appraised Value |
| INVESTMENTS | ||
| Date | Investee | Dividends |
| Sep 25, 2006 | Simon Murray and Associates Limited | Shares of General Enterprise Management Services Ltd. (“GEMS”) - closed ended investment company in the Cayman Island Shares of GEMS III Limited-BVI company that manages various direct investment funds |
INSIDERS TRADING ACTIVITY
Insiders are people or entities that have material non public knowledge of a company. These include directors, senior officers and entities owning more than 5% of common shares. Basically, whenever an insider is buying or selling his shares, a disclosure must be made to the PSE. Hence, we have summarized BHIs insiders trading activity and interpret the results thereof.
| Date | Acquired /Disposed | Average Selling price | Company | Owner | # of Shares | % of Ownership | # of shares owned |
| Aug 13, 2012 | Acquired | 0.1623 | BHI | JP Guilds | 22,470,000 | 55.88% | 4,452,243,408 |
| Aug 10, 2012 | Acquired | 0.1360 | BHI | JP Guilds | 360,000 | 55.60% | 4,429,773,408 |
| Aug 09, 2012 | Acquired | 0.1111 | BHI | JP Guilds | 2,790,000 | ||
| Jul 20, 2012 | Disposed | 0.1337 | BHI | JP Guilds | 9,360,000 | 55.56% | 4,426,623,408 |
| Jul 18, 2012 | Disposed | 0.1371 | BHI | JP Guilds | 13,510,000 | ||
| Jul 17, 2012 | Disposed | 0.1392 | BHI | JP Guilds | 14,560,000 | ||
| Jul 16, 2012 | Disposed | 0.1400 | BHI | JP Guilds | 14,300,000 | 56.03% | 4,464,053,408 |
| Jul 13, 2012 | Disposed | 0.1397 | BHI | JP Guilds | 5,400,000 | ||
| Jul 12, 2012 | Disposed | 0.1404 | BHI | JP Guilds | 5,360,000 | ||
| Jul 11, 2012 | Disposed | 0.1410 | BHI | JP Guilds | 6,160,000 | ||
| Jul 9, 2012 | Disposed | 0.1408 | BHI | JP Guilds | 10,910,000 | 56.42% | 4,495,273,408 |
| Jul 6, 2012 | Disposed | 0.1410 | BHI | JP Guilds | 10,820,000 | ||
| Jul 5, 2012 | Disposed | 0.1409 | BHI | JP Guilds | 11,320,000 | ||
| Jul 4, 2012 | Disposed | 0.1430 | BHI | JP Guilds | 14,130,000 | 56.84% | 4,528,323,408 |
| Jul 3, 2012 | Disposed | 0.1458 | BHI | JP Guilds | 9,620,000 | ||
| Jul 2, 2012 | Disposed | 0.1441 | BHI | JP Guilds | 8,910,000 | ||
| May 28,2012 | Disposed | 0.1515 | BHI | JP Guilds | 9,890,000 | 57.25% | 4,560,983,408 |
| May 24,2012 | Disposed | 0.1524 | BHI | JP Guilds | 6,620,000 | ||
| May 23,2012 | Disposed | 0.1531 | BHI | JP Guilds | 4,860,000 | ||
| May 17,2012 | Disposed | 0.1545 | BHI | JP Guilds | 19,780,000 | 57.52% | 4,582,353,408 |
| May 15,2012 | Disposed | 0.1557 | BHI | JP Guilds | 11,440,000 | ||
| May 14,2012 | Disposed | 0.1620 | BHI | JP Guilds | 7,000,000 | ||
| Apr 30,2012 | Disposed | 0.1940 | BHI | JP Guilds | 25,000,000 | 58.00% | 4,620,573,408 |
| Apr 27,2012 | Disposed | 0.1854 | BHI | JP Guilds | 28,200,000 | ||
| Apr 26,2012 | Disposed | 0.1804 | BHI | JP Guilds | 16,900,000 | ||
| Apr 25,2012 | Disposed | 0.1737 | BHI | JP Guilds | 29,080,000 | ||
| Mar 12,2012 | Acquired | 0.2117 | BHI | JP Guilds | 9,800,000 | 59.24% | 4,719,753,408 |
| Mar 9,2012 | Acquired | 0.1839 | BHI | JP Guilds | 5,050,000 | ||
| Mar 8,2012 | Acquired | 0.1761 | BHI | JP Guilds | 11,430,000 | ||
| Mar 7,2012 | Acquired | 0.1764 | BHI | JP Guilds | 11,500,000 | ||
| Mar 5, 2012 | Acquired | 0.2142 | BHI | JP Guilds | 466,853,408 | 58.77% | 4,681,973,408 |
| Mar 2, 2012 | Acquired | 0.1905 | BHI | JP Guilds | 8,690,000 | ||
| Mar 1, 2012 | Acquired | 0.1896 | BHI | JP Guilds | 6,000,000 | ||
| Feb 27, 2012 | Acquired | 0.1703 | BHI | JP Guilds | 11,340,000 | 56.01% | 4,200,430,000 |
| Feb 24, 2012 | Acquired | 0.1794 | BHI | JP Guilds | 2,990,000 | ||
| Feb 23, 2012 | Acquired | 0.1839 | BHI | JP Guilds | 3,000,000 | ||
| Feb 21, 2012 | Disposed | 0.1917 | BHI | JP Guilds | 45,880,000 | 55.77% | 4,183,100,000 |
| Feb 20, 2012 | Disposed | 0.2001 | BHI | JP Guilds | 33,450,000 | ||
| Feb 17, 2012 | Disposed | 0.2016 | BHI | JP Guilds | 27,480,000 | ||
| Feb 16, 2012 | Disposed | 0.2115 | BHI | JP Guilds | 26,900,000 | 57.20% | 4,289,910,000 |
| Feb 15, 2012 | Acquired | 0.2200 | BHI | JP Guilds | 17,700,000 | 57.56% | 4,316,810,000 |
| Feb 7,2012 | Disposed | 0.1650 | BHI | JP Guilds | 9,920,000 | 57.30% | 4,299,110,000 |
| Feb 3,2012 | Disposed | 0.1650 | BHI | JP Guilds | 12,540,000 | ||
| Jan 12,2012 | Disposed | 0.1670 | BHI | JP Guilds | 50,000,000 | 57.62% | 4,321,570,000 |
| Jan 11,2012 | Disposed | 0.1670 | BHI | JP Guilds | 10,000,000 | ||
| Jan 10,2012 | Disposed | 0.1700 | BHI | JP Guilds | 13,000,000 | ||
| Oct 3, 2011 | Acquired | 0.0280 | BHI | JP Guilds | 6,530,000 | 58.59% | 4,394,570,000 |
| Sep 1,2011 | Disposed | 0.3950 | BHI | JP Guilds | 77,000,000 | 58.51% | 4,388,040,000 |
| Aug 26, 2011 | Acquired | 0.3780 | BHI | JP Guilds | 12,460,000 | ||
| Aug 25, 2011 | Acquired | 0.3850 | BHI | JP Guilds | 28,730,000 | ||
| Aug 25, 2011 | Disposed | 0.4200 | BHI | JP Guilds | 3,350,000 | ||
| Aug 25, 2011 | Disposed | 0.4110 | BHI | JP Guilds | 76,650,000 | ||
| Aug 16, 2011 | Disposed | 0.1960 | BHI | JP Guilds | 4,200,000 | 60.05% | 4,503,850,000 |
| Aug 15, 2011 | Disposed | 0.1890 | BHI | JP Guilds | 7,180,000 | ||
| Aug 12, 2011 | Disposed | 0.1860 | BHI | JP Guilds | 20,000,000 | ||
| Aug 5,2011 | Disposed | 0.1920 | BHI | JP Guilds | 5,000,000 | 60.47% | 4,535,230,000 |
| Aug 3,2011 | Disposed | 0.2060 | BHI | JP Guilds | 9,320,000 | ||
| Aug 2,2011 | Disposed | 0.2118 | BHI | JP Guilds | 12,000,000 | ||
| Jul 18, 2011 | Disposed | 0.2064 | BHI | JP Guilds | 28,000,000 | 60.82% | 4,561,550,000 |
| Jul 13,2011 | Disposed | 0.1490 | BHI | JP Guilds | 1,800,000 | 61.19% | 4,589,550,000 |
| Jul 13,2011 | Disposed | 0.1460 | BHI | JP Guilds | 980,000 | ||
| Jul 11,2011 | Disposed | 0.1020 | BHI | JP Guilds | 105,500,000 | ||
| May 9, 2012 | Disposed | 0.1760 | BHI | M. Badiola-VP | 1,010,000 | - | 50,000 |
| Oct 28, 2011 | Disposed | 0.2200 | BHI | M. Badiola-VP | 1,500,000 | 0.014% | 1,060,000 |
| Oct 27, 2011 | Disposed | 0.2130 | BHI | M. Badiola-VP | 2,000,000 | ||
| Oct 5,2011 | Acquired | 0.2750 | BHI | M. Badiola-VP | 1,000,000 | 0.061% | 4,560,000 |
| Oct 4,2011 | Disposed | 0.2650 | BHI | M. Badiola-VP | 4,000,000 | ||
| Oct 3,2011 | Acquired | 0.2830 | BHI | M. Badiola-VP | 2,000,000 | ||
| Sep 23,2011 | Acquired | 0.4150 | BHI | M. Badiola-VP | 2000,000 | 0.074% | 5,560,000 |
| Sep 22,2011 | Disposed | 0.4430 | BHI | M. Badiola-VP | 2,000,000 | ||
| Sep 21,2011 | Acquired | 0.4600 | BHI | M. Badiola-VP | 1,000,000 | ||
| Sep 21,2011 | Disposed | 0.4550 | BHI | M. Badiola-VP | 2,000,000 | ||
| Sep 20,2011 | Disposed | 0.4720 | BHI | M. Badiola-VP | 3,000,000 | ||
| Sep 12,2011 | Acquired | 0.4300 | BHI | M. Badiola-VP | 4,000,000 | 0.127% | 9,560,000 |
| Sep 1,2011 | Disposed | 0.4200 | BHI | M. Badiola-VP | 2,000,000 | 0.074% | 5,560,000 |
| Aug 31,2011 | Disposed | 0.4080 | BHI | M. Badiola-VP | 3,000,000 | ||
| Aug 26,2011 | Disposed | 0.3800 | BHI | M. Badiola-VP | 2,000,000 | ||
| Aug 25,2011 | Acquired | 0.3850 | BHI | M. Badiola-VP | 2,000,000 | ||
| Aug 18,2011 | Acquired | 0.2660 | BHI | M. Badiola-VP | 3,380,000 | 0.141% | 10,560,000 |
| Aug 18,2011 | Disposed | 0.3100 | BHI | M. Badiola-VP | 2,000,000 | ||
| Sep 23,2011 | Acquired | 0.4150 | BHI | C. Gotanco – Treas. | 1,200,000 | .00016% | 1,200,000 |
The insiders are active in their company shares. The VP Finance remaining shares is now 50,000 shares
whileJP Guilds, the majority owner has been dumping shares in the market. Its ownership % of 61.19% last
July 13, 2011 is now 55.88% as of Aug 13, 2012. Around 137M shares were disposed in the public. SB
Securities is the broker of JP Guilds.
With the hefty sum of pesos needed for the development of Puerto Azul, I think the management are preparing for funds since it is the policy of the management to avoid bank debts.
SB Securities is the broker of JP Guilds. See the July 11, 2012 sell side of SB Securities and the disclosure made by BHI for the Jul 11, 2012 purchase of JP Guilds. They are exactly the same.
BIRD’S-EYE VIEW
v 2007, 2008 and 2009 are the years when Puerto Azul, Puerto Galera, Friday’s chain expansion are not yet in the picture. The current administrations focus on tourism has motivated the company to pursue expansion aggressively.
v Revenue is stagnant for the past five years. Y2012 is expected to be the same. Y2013 is estimated to generate at least 200 million in revenues with the opening of Fridays Boquete Beach at Puerto Galera which is expected to be completed on Feb 2013. Average price of the stock is .18 for 2007, 2008, 2009 based on fiscal years closing price.
v The P/E ratio average for 2007, 2008 and 2009 is 9.5x (other gains/losses excluded). This is the time when BHI Guilds did not issue any shares in exchange for JP Guilds land. When the Paniman, Cavite lands were acquired in exchange for 900 million pesos last Feb 9, 2010, the P/E ratio average for 2010 and 2011 became 15.6x (other gains/losses excluded). With Fridays resort chain expected to open every year starting the P/E ratio shall increased.
v Book Value per Share is .1588. Appraised value per share of land is .51 per share. Price to Book Value ratio is .4 for 2011 and 2010 while the average for 2007, 2008 and 2009 is .9. I think the target price as far as book value play is .145 sans any development from Puerto Azul.
v ROA average for 2007, 2008 and 2009 is 3% only. That is too low! ROE average on the other hand is 6% for 2007, 2008 and 2009. This ratios need to improve and I think the current political and economic environment will play a crucial role in it. Government’s target of foreign visitors is 10M before the president’s terms ends while Philippine economy is one of the best performing country in the world. GDP in 1Q 2012 at 6.4% is commendable.
v The prospect of BHI given its massive land bank in Cavite is attractive. The appraised book value per share of .289 is more than 300% than what is recorded in the company’s books.
v The insiders are active in their company shares. The VP Finance remaining shares is now 50,000 shares while JP Guilds, the majority owner has been dumping shares in the market. Its ownership % of 61.19% last July 13, 2011 is now 55.88% as of Aug 13, 2012. Around 137M shares were disposed in the public. SB Securities is the broker of JP Guilds.
THE TRADING PLAN
Buy below .11. This price is safe for short term and long term planning.
Average price of the stock is .18 for 2007, 2008, 2009 based on fiscal years closing price.
The average price to book value per share for 2007, 2008 and 2009 is .9. Calculation at .9 PBV of current book value will result in .143. It is assumed that this will be achieved in short term. With its massive land bank, the company is a book value play. The target price of .143 does not take into account the increase in P/E for the expansions of Friday’s resort chain and major developments on Puerto Azul. It is a conservative value.
Watch for any major developments for the Puerto Azul project as this will catapult BHI to its previous highs last year which is .53 which is almost equivalent to its current appraised book value of .51.
If price goes beyond target prices, ride it until the trend ends. Remember, the trend is your friend until it ends.
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