[4409] in Athena User Interface
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daemon@ATHENA.MIT.EDU (Homer Howard)
Tue Oct 4 21:14:51 2005
Message-ID: <54472824FF.F6800@syzqqxh@student.uni-tuebingen.de>
Reply-To: "Homer Howard" <syzqqxh@student.uni-tuebingen.de>
From: "Homer Howard" <syzqqxh@student.uni-tuebingen.de>
To: "Aui" <aui@mit.edu>
Date: Wed, 05 Oct 2005 01:08:44 -0100
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* HOT STOCK ON WALL ST. *
* CARIBBEAN DEVELOPMENTS, INC. *
* PINK SHEETS SYMBOL: CDVM *
* MONDAY CLOSE: 0.66 *
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Caribbean Developments, Inc. (Pink sheets: CDVM) could be the next big one=
on Wall Street this summer. With an incredible business model and mission=
you should add this one to your radar and watch it trade this morning thi=
s week. We are expecting incredible results out of this one.
Primary Business Activity:
Agriculture, growing blueberries, cranberries, truffles in St. Vincent for=
export to North America, South America and Europe.
Target Market:
Supermarkets, Health Food Stores and Restaurants
Geographic Market:
Primary - North America and the Caribbean
Secondary =96 Europe
Tertiary - South America
Product/Service Description:
St. Vincent and the Grenadines is considered the breadbasket for much of t=
he Caribbean. Therefore it is a natural choice to establish the base of th=
e operations for CDVM on St. Vincent. Blueberries and cranberries are con=
sidered two of the most vital foods that we can consume as both have been =
proven to help prevent a number of diseases. Truffles are perhaps the most=
profitable cash crop produced anywhere and with tourism booming in the Ca=
ribbean and many high class restaurants located in the surrounding islands=
, Truffles was a natural crop to focus on.
CDVM will focus not only on growing and harvesting these crops for export =
but will look to integrate these products to produce fruit drinks, jams je=
llies and other products for export. Other products will also include the=
development of the coconut business, utilizing the natural ingredients an=
d the numerous by-products of the wondrous coconut
Current Line:
Blueberries, Cranberries, and Truffles. Other related business will inclu=
de fruit juices, jams jellies, oils and will also include coconuts and coc=
onut related products.
Location and Facilities:
Corporate office to open in St. Vincent with satellite offices to be opene=
d in Marseilles, France, San Francisco, Ca. and Buenos Aires, Argentina.
Management Projections:
The following table sets forth for the periods indicated certain pro forma=
income statement data.
Year 1:
Net Sales: 12,000,000.00
Cost of Sales: 6,000,000.00
Gross Profit: 6,000,000.00
Operating Expenses: 2,000,000.00
Income Taxes: 0.00
Earnings After Taxes: 4,000,000.00
Earnings Per Share: 0.20
Year 1:
Net Sales: 18,000,000.00
Cost of Sales: 9,000,000.00
Gross Profit: 9,000,000.00
Operating Expenses: 3,000,000.00
Income Taxes: 0.00
Earnings After Taxes: 6,000,000.00
Earnings Per Share: 0.30
Year 1:
Net Sales: 30,000,000.00
Cost of Sales: 12,000,000.00
Gross Profit: 18,000,000.00
Operating Expenses: 5,000,000.00
Income Taxes: 0.00
Earnings After Taxes: 13,000,000.00
Earnings Per Share: 0.65
Year 1:
Net Sales: 50,000,000.00
Cost of Sales: 15,000,000.00
Gross Profit: 35,000,000.00
Operating Expenses: 8,000,000.00
Income Taxes: 0.00
Earnings After Taxes: 27,000,000.00
Earnings Per Share: 1.35
No income taxes payable in St. Vincent so all income flows to the bottom l=
ine. In addition, the revenue and income figures do not include any contr=
ibution from the coconut business that will be developed within the first =
18 months. This business should increase revenue and income projections by=
at least 50%.
Business/Market Opportunity:
Organic farming is also synergistic with other sectors of the economy, esp=
ecially tourism. Farms operating according to Indigenous Agricultural Pra=
ctices provide new opportunities to the tourism industry as well. The affl=
uent consumers from the US and Europe purchasing organic products at their=
grocers are also vacationing in the Caribbean. Several farms are taking a=
dvantage of this and opening their doors to the public for tours so they m=
ay see first-hand how the organic produce they buy at home is grown in the=
community-based organic farms. The additional benefit of techniques which=
are less land-intensive not only benefits a budding agro tourism industry=
, but also helps build an ecotourism industry where tourists can visit res=
tored and pristine ecosystems which define the beauty of the Caribbean.Muc=
h of the political implications of organic marketing derive from the econo=
mic, because the organic market is still establishing itself. There were m=
ovements in the EU and US during the 1990=92s to establish a certification=
process because of the confusion created by =93greenwashed=94 goods marke=
ted to organic consumers but were not grown according to organic standards=
This is no longer a problem in the US or EU because certification boards=
exist to determine what qualifies as organic. Another aspect of the poli=
tical following the economic is the great strain of resources and on the a=
ttention of regional leaders created by the closure of protected markets. =
For nearly two decades the issues pertaining to the Lom=E9 Convention have=
dominated CARICOM concerns. As preferences end and the economy is restruc=
tured organic farming will be of some small help to ease the minds of lead=
ers about the future of agriculture. Agriculture itself will not be suffic=
ient to continue propelling the economy, but leaders may need to consider =
organic production as a viable future for their respective localities in o=
rder to boost the existing sector. Also, increased economic independence =
boosts influence. Because the organic market is relatively small (about 2-=
14% of the food supply worldwide, depending on the region), producers have=
closer contacts with traders who distribute to retailers. Closer particip=
ation in economic activities enables the people to learn more about how th=
e political process affects economic endeavor, and become more active in t=
he global sphere. Firms that demonstrate buoyancy in the global marketplac=
e will be looked to for ideas and inspiration by others searching for solu=
tions to their own problems. There are some other policy issues that need=
to be addressed for organic marketing to be successful. Processing and m=
arketing facilities will need to be developed to ensure products flow to t=
heir intended markets. Relationships will need to be built with =93import=
ers, traders, or wholesalers in the target market=85 to coordinate distrib=
ution and access information.=94 The monocultures that dominated Caribbea=
n markets in the post-colonial era are almost entirely foreign to the orig=
inal agricultural structure of the indigenous Caribbean people. The produc=
ts Europeans introduced to the Caribbean were accompanied by foreign agric=
ultural techniques. While European techniques were largely focused on econ=
omic returns, agriculture served much more important communal and spiritua=
l functions for the indigenous people of the Caribbean. Organic farming re=
vives Indigenous Agricultural Practices, which in turn revives culture; fr=
om this community can strengthen, both in terms of social cohesion and eco=
nomic stability. All of these things will only contribute to the growth o=
f Caribbean Developments, Inc.
Company Mission:
Production of blueberries, cranberries, and truffles. As well as harvesti=
ng and cultivation of coconuts, which will encompass the production of coc=
onut oil.
Competitive Advantages/Partners and Alliances:
The company by focusing production in the Caribbean and by also only produ=
cing organic products is able to take advantage of abundant crop lands, lo=
w labor costs as well as charging an acceptable premium for the products p=
roduced. Organic agriculture can improve farmers=92 incomes and the manage=
ment of natural resources, but entails additional production and certifica=
tion costs and a significant time lag for transition to organic certificat=
e and to realize profits. Organic production must be based on sustainable =
comparative advantage and is likely to be most successful in areas with ef=
fective research and extension systems, a supportive policy and regulatory=
framework, necessary infrastructure, adequate certification systems, and =
good access to foreign markets. Producer associations have been key to acc=
essing markets, disseminating production technologies, and monitoring comp=
liance with organic standards.Over the past 50 years, agricultural product=
ion has increased dramatically, in part through the use of chemical fertil=
izers, pesticides, and antibiotics. These technologies and the intensive p=
roduction systems they support can result in increased human and environme=
ntal health risks. As a result, a market has developed for =93organic=94 f=
ood products, which consumers perceive as being safer and more environment=
ally friendly. Retail sales of organic products were estimated at=
US$39.7 billion worldwide in 2005, and have grown more than 20 percent an=
nually in major markets over the past 15 years. However, these growth rate=
s are from a low base, and organic food sales generally account for less t=
han 2 percent of total sales in most markets. Thus opportunities to profit=
ably enter this market are somewhat limited by demand. Organic agricultura=
l production, given its limited production levels and variability in yield=
s, is unlikely to impact substantially on global food supplies.Organic agr=
icultural production systems employ agronomic, biological, and mechanical =
methods in place of chemical inputs. Cultural and biological practices con=
trol pests and crop rotations, and animal and green manures maintain soil =
fertility. There is a virtual prohibition on use of synthetic chemicals fo=
r crop and livestock production. Most organic agricultural systems also ap=
ply improved land husbandry techniques, such as soil-conservation measures=
, crop rotation, and reduced crop residue burning. Organic production usu=
ally involves annual inspection of production sites by independent special=
ized certification agencies, interviews with producers, review of organic =
fertilizers and other inputs used, and laboratory tests of soils, water, a=
nd agricultural products. Requirements include: land must not have been us=
ed for conventional agriculture relying on chemical or synthetic inputs fo=
r a minimum time period (usually three years); conventionally grown crops =
must be a minimum distance from organic crops, and a forested area may be =
required as a barrier between organically and conventionally grown crops; =
inputs must be organic with no chemical or synthetic inputs permitted; soi=
l-conservation measures must be applied; and farmer associations must be a=
ble to organize supervision to ensure that organic standards are met by al=
l members. Certification focuses on the process of production rather than =
the end product itself. Small farmers may have competitive advantages in o=
rganic farming and can benefit in several ways. First, production costs m=
ay be reduced by substituting labor and organic inputs for chemical inputs=
that are often more expensive and difficult to obtain. Second, prices ma=
y be higher for organic products. Third, organic production may reduce hea=
lth risks from handling chemical inputs. Finally, soil conservation measu=
res and control of pests and diseases with manual and biological methods m=
ay reduce contamination of natural resources. Organic farming is also syne=
rgistic with other sectors of the economy, especially tourism. Farms opera=
ting according to Indigenous Agricultural Practices provide new opportunit=
ies to the tourism industry as well. The affluent consumers from the US an=
d Europe purchasing organic products at their grocers are also vacationing=
in the Caribbean. Several farms are taking advantage of this and opening =
their doors to the public or tours so they may see first-hand how the orga=
nic produce they buy at home is grown in the community-based organic farms=
The additional benefit of techniques which are less land-intensive not o=
nly benefits a budding agro-tourism industry, but also helps build an ecot=
ourism industry where tourists can visit restored and pristine ecosystems =
which define the beauty of the Caribbean.
DiscIaimer:
All material herein was based upon information supplied by the company or =
from other sources believed to be reliable. The information contained here=
in is not guaranteed to be accurate, and should not be considered all-incl=
usive. The company covered has not approved the statements made herein. T=
his profile contains F0RWARD-L00KING statements that involve risks and unc=
ertainties. A company's actual results could differ materially from those=
described in any F0RWARD-L00KING statements. The material listed herein i=
s for informational purposes only and should not be construed as an offer =
or solicitation of an offer to buy or sell securities. We are not a licen=
sed broker, broker dealer, market maker, investment banker, investment adv=
isor, analyst or underwriter. Please consult a broker before purchasing a=
ny securities mentioned herein. Given the nature of the company profiled w=
ithin, and the lack of active trading in the market, investing in such a s=
ecurity is highly speculative and carries a high degree of risk. We have b=
een compensated by a third party, one hundred thousand dollars, on behalf =
of the company featured in this profile. Our affiliates, officers, directo=
rs and employees may also have bought or may buy the shares discussed in t=
his profile and may profit in the event that those shares rise in value. =
We will not advise as to when to sell; each investor must make that decisi=
on based on his or her judgment of the market.
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