Ok #bitcoin guys, what make you of this?
So, we've got a possible future South American equivalent of the CME, a possible Amazon for farms and farm equipment, and a commercial real estate business, on their own, are trading for half of CRESY current market cap, and could have intrinsic value of billions.
The core land that CRESY possesses is worth perhaps billions as well if we believe their valuation assessments. An extremely conservative $750/hectare for the whole portfolio yields 400M.
Then we have the 50% stake in fyo and the 22.5 stake in Agrofy. This started as an ag tech startup in 2000 and evolved into one of the most important brick and mortar ag exchanges in Latin America. They do futures, options, and brokering.
Agrofy recently raised 23M in a series B from SP Ventures. This was the largest Latin American agtech deal ever done. Agrofy has 2.6M in revenue, which has increased 50% YoY.
I think we can say with confidence these two stakes are worth at least 50M.
The real estate segment is currently trading at just 161M USD. Just two years the capitalization was over a billion dollars. Given that most of these properties are all located in Argentina, this valuation is probably mostly due to the fact that the company has been an absolute basket case. While Fitch views the bonds at distressed levels, IRSA has nonetheless reduced its exposure and leverage is incredibly low. 0 chance of bankruptcy.
The farming segment itself is currently profitable, and with the current outlook for cattle, corn, soy, and sugarcane, earnings should continue to improve. Despite more than doubling since the March lows, CRESY is seriously lagging its fundamentals. The earnings for this company are set to explode as they realize skyrocketing agricultural prices.
Ok, here's the $CRESY thread. Sum of parts + macro. Here's what we have:
1) > 1.3M acres of wholly owned SA farmland (beef, corn, soy, sugarcane
2) 62.4% stake in a truly impressive real estate portfolio - 15 malls, 4 skyscrapers, 3 luxury hotels, nearly 1000 acres of land in Buenos Aires and Montevideo, the Buenos Aires fairground, 2 convention centers, a consumer bank, a commercial bank, and an arena
3) 50% stake in Argentina's biggest ag exchange
4) 22.5% stake in ag fintech platform
This article is a great exploration of the evidence and data around raising the minimum wage to $15/hr.
TLDR: It's going to lead to more unemployment, slower growth, and higher costs for both businesses and consumers. This is what the data says.
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