This speculative stock has significant insider holdings and looks very undervalued.
TreeCon Resources, Inc. (TCOR)
From S.A. Advisory
TreeCon Resources, Inc. (TCOR) is a holding company that, through its subsidiaries, distributes, leases and provides financing for industrial and logging equipment. The company is also engaged in sawmill operations, oilfield fluids services and real estate.
Year-end results for 2018 should be released near term and revenues will reach $100 million (30% growth rate) and earnings/share will equal at least $0.10/fully diluted shares (28 million common shares). Management owns 50% of TCOR, according to filings. The stated book value prior to year-end equals $1.15 (does not fully value the 5000 acres of timber located within Texas and Louisiana).
The most profitable business subsidiary is the heavy equipment division that can be used in construction of Oil & Gas drilling, home and business construction and pipeline creation.
If we value TCOR based upon fair valuation, then the current share price looks very compelling. If we assign a PE of 1/2 growth (15X) a share price of $1.50 and if we assign 2X the current book, then we calculate $2.30. And upon calculating a current price/sales ratio (P/S), ~a value of .1 results. A value of 1 is very cheap). If we assign a P/S ratio of .5, then a share price of $2.00 results.
We also assume that if the company was sold it could easily fetch $4-$6/sh. The reality is TCOR is extremely cheap and discounted value/patient investor types need only to apply!
The complete recommendation can be found www.saadvisory.
William Velmer, S.A. Advisory, www.saadvisory.com, 949-922-9986, December 29, 2018