Author Topic: VULC - Vulcan International  (Read 23241 times)

Foreign Tuffett

  • Hero Member
  • *****
  • Posts: 1385
Re: VULC - Vulcan International
« Reply #40 on: February 05, 2020, 06:21:34 AM »
Former Teldar Paper Vice President


Hielko

  • Hero Member
  • *****
  • Posts: 1185
Re: VULC - Vulcan International
« Reply #41 on: February 05, 2020, 06:56:20 AM »
That looks pretty liquidated to me :p

capitalg

  • Newbie
  • *
  • Posts: 35
Re: VULC - Vulcan International
« Reply #42 on: June 29, 2020, 09:17:01 AM »
Oddball Stocks posted an announcement from the company indicating that they entered into an agreement to sell the Clarksville site:

http://www.oddballstocks.com/2020/06/vulcan-international-corp-vulc-sends.html

I am a shareholder and have not received, so unsure as to how this was distributed (or if my mail is just slow).

SI

  • Full Member
  • ***
  • Posts: 150
Re: VULC - Vulcan International
« Reply #43 on: August 19, 2020, 07:32:45 AM »
Word around the campfire was the timber sale got done in excess of $1,000/acre. One of the people I spoke with said it was closer to $1200 as their timber was incredibly well stocked(i.e. excess inventory).

wabuffo

  • Hero Member
  • *****
  • Posts: 632
    • Twitter
Re: VULC - Vulcan International
« Reply #44 on: August 19, 2020, 07:58:53 AM »
Word around the campfire was the timber sale got done in excess of $1,000/acre. One of the people I spoke with said it was closer to $1200 as their timber was incredibly well stocked (i.e. excess inventory).

That's very interesting.  In May, I tried to work out my google-fu search skills to see if I could find some information on Vulcan's Upper Michigan timberland.  I was able to find evidence that maybe Vulcan got a very good price but since I wasn't 100% sure, I kind of forgot about my work.  But I'll post what I found here - sorry for the long-ish post - but, here goes.

1) I found the sales brochure for the company's property summary.  As most people following this name already know, the company was selling the timberland it owns in Michigan's Upper Peninsula in Houghton and Ontonagon Counties.  The property comprises 14,306 acres.  (This number becomes important later on).  Here's a picture of the property summary (as always - you can click on the images to go full-screen for better readability):



2) Ok - so all property records are maintained in local county clerk offices.  More and more of them are starting to put their records on-line.  Ontonagon County is old-school and just has a welcome web-page and no on-line access.  But Houghton County is on-line.   So I did a search using "Vulcan Timberlands" on its County Register of Deeds.  This is what came up:



3) The top item looks like a transaction occurred on December 17, 2019 between Vulcan Timberlands and another company named "MWF V Vulcan LLC".  Who is MWF V Vulcan LLC?  It obviously looks like a new LLC created to enter into this transaction.  So let's try to find its business registration on the Michigan's Secretary of State website.



4) It looks like this LLC was set up (11/19/2019) about a month before the transaction with Vulcan Timberlands.   But who or what is MWF V Vulcan, LLC?   At the bottom we have an address in Jackson, MS.  Let's google that address:



5) Now we're getting somewhere, the buyer looks like it is Molpus Woodlands Group. Its clear from their website that they are a buyer and investor in timberland.   Molpus describes its business as acquiring, managing, and selling timberland as an investment vehicle for pension funds, college endowments, foundations, insurance companies, and high-net-worth individual investors. Molpus currently manages approximately 1.8 million acres of timberland investments in 17 states. They do this by creating investment funds whose principal asset appears to be timberland.

Let's see if they have any SEC filings.   It looks like they've registered a number of funds historically.  Their latest one is Molpus Woodlands Fund V, L.P.  That's starting to make sense -- MWF V in the Michigan LLC stands for (M)olpus (W)oodlands (F)und (V).

https://www.sec.gov/Archives/edgar/data/1733020/000173302119000001/xslFormDX01/primary_doc.xml

6) I then went back to their Company website and looked at their news releases.

https://www.molpus.com/about-us/news/molpus-woodlands-group-purchases-14,306-acres-in-the-upper-peninsula-of-michigan.html
Quote
The Molpus Woodlands Group, LLC (Molpus), a timberland investment management organization headquartered in Jackson, Mississippi, has on behalf of a client, successfully purchased approximately 14,306 acres of timberland in the Upper Peninsula of Michigan.

Bingo!

The press release is dated Jan. 7, 2020 - a couple of weeks after the transaction date we found on the Houghton County county records.  And we have a match on the acreage and description straight from Vulcan Timberland's original property summary upthread.

7) Now comes the tougher part - how do we find out how much Molpus paid for the timberland?  I'm still trying to find that out.  But one thing I know is that if Molpus leveraged the property via a mortgage or other form of debt - which I'm thinking they did since real estate is almost always leveraged - then the liens have to be filed again at the County Clerk's office so that the bank can perfect its security against the assets.  So I went searching again, this time using "MWF V Vulcan, LLC" as my search term.  This is what I found in the Houghton County Clerk's website:



There we go!  While we don't have a sales price, it looks like MWF V LLC and Molpus Woodlands Fund V obtained $27m of mortgage financing from Southern AgCredit (they are a bank or finance company in MS, I looked them up) on March 27, 2020.   

While that doesn't completely confirm the sales proceeds to Vulcan - it does give us a rough idea of how much they got.  Assuming the equity portion for MWF V LLC/Molpus roughly matches the transaction costs for Vulcan, then $27m works out to $1,887 per acre.  That seems very high compared to recent appraisals over at KEWL (which have been ~$1000/acre, though my data is several years old).

MWF V Vulcan, LLC just registered in Michigan for this one transaction, so I don't think that LLC owns any other property.  Of course, the mortgage could cover a number of transactions that Molpus has done recently and they filed liens in a number of country clerk offices around the US for this one mortgage. 

Anyhoo - sorry for the long post, but the circumstantial evidence, though not 100% conclusive, does seem to point to a very high price paid for the Vulcan UP timberlands. 

wabuffo
« Last Edit: August 19, 2020, 12:56:07 PM by wabuffo »

mjm

  • Jr. Member
  • **
  • Posts: 65
Re: VULC - Vulcan International
« Reply #45 on: August 19, 2020, 08:04:57 AM »
impressive work

SI

  • Full Member
  • ***
  • Posts: 150
Re: VULC - Vulcan International
« Reply #46 on: August 19, 2020, 09:10:57 AM »
That is excellent work.

I spoke with several brokers in the area who confirmed that it cleared at an elevated price. One of the brokers said it hadn't been touched in years and another described the price at a level where you could fund the "upsized" portion of the purchase price by just selling the excess hardwoods down to a level from which you could sustainably harvest.

It is a guess but I would doubt that $1,750/acre given the tone of the conversation but $1,300-$1,400 wouldn't surprise me.


samwise

  • Sr. Member
  • ****
  • Posts: 271
Re: VULC - Vulcan International
« Reply #47 on: August 19, 2020, 08:23:45 PM »

Saluki

  • Full Member
  • ***
  • Posts: 230
Re: VULC - Vulcan International
« Reply #48 on: August 20, 2020, 06:07:46 AM »

"But what I do have are a very particular set of skills; skills I have acquired over a very long career. Skills that make me a nightmare for people like you"


Word around the campfire was the timber sale got done in excess of $1,000/acre. One of the people I spoke with said it was closer to $1200 as their timber was incredibly well stocked (i.e. excess inventory).

That's very interesting.  In May, I tried to work out my google-fu search skills to see if I could find some information on Vulcan's Upper Michigan timberland.  I was able to find evidence that maybe Vulcan got a very good price but since I wasn't 100% sure, I kind of forgot about my work.  But I'll post what I found here - sorry for the long-ish post - but, here goes.

1) I found the sales brochure for the company's property summary.  As most people following this name already know, the company was selling the timberland it owns in Michigan's Upper Peninsula in Houghton and Ontonagon Counties.  The property comprises 14,306 acres.  (This number becomes important later on).  Here's a picture of the property summary (as always - you can click on the images to go full-screen for better readability):



2) Ok - so all property records are maintained in local county clerk offices.  More and more of them are starting to put their records on-line.  Ontonagon County is old-school and just has a welcome web-page and no on-line access.  But Houghton County is on-line.   So I did a search using "Vulcan Timberlands" on its County Register of Deeds.  This is what came up:



3) The top item looks like a transaction occurred on December 17, 2019 between Vulcan Timberlands and another company named "MWF V Vulcan LLC".  Who is MWF V Vulcan LLC?  It obviously looks like a new LLC created to enter into this transaction.  So let's try to find its business registration on the Michigan's Secretary of State website.



4) It looks like this LLC was set up (11/19/2019) about a month before the transaction with Vulcan Timberlands.   But who or what is MWF V Vulcan, LLC?   At the bottom we have an address in Jackson, MS.  Let's google that address:



5) Now we're getting somewhere, the buyer looks like it is Molpus Woodlands Group. Its clear from their website that they are a buyer and investor in timberland.   Molpus describes its business as acquiring, managing, and selling timberland as an investment vehicle for pension funds, college endowments, foundations, insurance companies, and high-net-worth individual investors. Molpus currently manages approximately 1.8 million acres of timberland investments in 17 states. They do this by creating investment funds whose principal asset appears to be timberland.

Let's see if they have any SEC filings.   It looks like they've registered a number of funds historically.  Their latest one is Molpus Woodlands Fund V, L.P.  That's starting to make sense -- MWF V in the Michigan LLC stands for (M)olpus (W)oodlands (F)und (V).

https://www.sec.gov/Archives/edgar/data/1733020/000173302119000001/xslFormDX01/primary_doc.xml

6) I then went back to their Company website and looked at their news releases.

https://www.molpus.com/about-us/news/molpus-woodlands-group-purchases-14,306-acres-in-the-upper-peninsula-of-michigan.html
Quote
The Molpus Woodlands Group, LLC (Molpus), a timberland investment management organization headquartered in Jackson, Mississippi, has on behalf of a client, successfully purchased approximately 14,306 acres of timberland in the Upper Peninsula of Michigan.

Bingo!

The press release is dated Jan. 7, 2020 - a couple of weeks after the transaction date we found on the Houghton County county records.  And we have a match on the acreage and description straight from Vulcan Timberland's original property summary upthread.

7) Now comes the tougher part - how do we find out how much Molpus paid for the timberland?  I'm still trying to find that out.  But one thing I know is that if Molpus leveraged the property via a mortgage or other form of debt - which I'm thinking they did since real estate is almost always leveraged - then the liens have to be filed again at the County Clerk's office so that the bank can perfect its security against the assets.  So I went searching again, this time using "MWF V Vulcan, LLC" as my search term.  This is what I found in the Houghton County Clerk's website:



There we go!  While we don't have a sales price, it looks like MWF V LLC and Molpus Woodlands Fund V obtained $27m of mortgage financing from Southern AgCredit (they are a bank or finance company in MS, I looked them up) on March 27, 2020.   

While that doesn't completely confirm the sales proceeds to Vulcan - it does give us a rough idea of how much they got.  Assuming the equity portion for MWF V LLC/Molpus roughly matches the transaction costs for Vulcan, then $27m works out to $1,887 per acre.  That seems very high compared to recent appraisals over at KEWL (which have been ~$1000/acre, though my data is several years old).

MWF V Vulcan, LLC just registered in Michigan for this one transaction, so I don't think that LLC owns any other property.  Of course, the mortgage could cover a number of transactions that Molpus has done recently and they filed liens in a number of country clerk offices around the US for this one mortgage. 

Anyhoo - sorry for the long post, but the circumstantial evidence, though not 100% conclusive, does seem to point to a very high price paid for the Vulcan UP timberlands. 

wabuffo
If it's important, do it every day. If it's not important, don't do it at all.  -Dan Gable

mjm

  • Jr. Member
  • **
  • Posts: 65
Re: VULC - Vulcan International
« Reply #49 on: November 14, 2020, 04:28:09 AM »
FYI, article on oddball stocks regarding payment as being direct w/o tranfer agent and possible need for those holding shares in retirement fund to contact for instructions.