World Wide Assets LLC
Profitability and Potential for Growth
Profitability
There is an interesting confluence of factors at Laguna Salada that create a rapid return on investment at the front end of the projects.
The first thing we need to do to be successful at the lagoon is create a viable environment for the animals in the lagoon itself. Without this we do not have a project.
We had two options and failed at the first one. This first option was to interest the State in making a $2B investment in infrastructure to create a circulating lagoon using Adj. Professor Newcomb's design for an ingress and egress canal and separate the lagoon using a dike in the center. While vastly expensive, this would have allowed for slow circulation at the project and the dike itself could have been used for residential land which would have been given away to people who would be required to build nice homes to keep the land. Because of economic concerns, the State turned this down after examining it for nearly a year, in September of 2009. This would have been a huge economic engine for Baja California and Mexicali.
Professor Newcomb stated:
"This left us with the second, more commercially profitable of the two options, to pull water out and make salt. To ensure profitability, this turned into water for use in Paulownia forestry projects and the creation of very high volumes of sea salt. Add to this a large fish farming operation with low operational costs and the profits are quite high and come reasonable soon after funding. It is estimated that salt can be sold between months 18 and 24, and at very high volumes.
"I don't believe in getting profits from just one item, which a lot of Wall Street investors focus on, that is, the quarterly earnings report, that is very narrow and increases the risk since this converts thinking into quarterly thinking as opposed to long term profitability. I like to see a variety of solid business income, that is, multiple cash flow models. I like to see whether it has the potential for growth, whether it is an effective place to reinvest in the business of people and profits for at least 30 years.
"The pro forma income shows a very strong return, however, is there potential for growth?
"Here, the answer is a resounding "YES!"
"Why? each of the sectors we have explored in the business plans show huge growth potential. As we discover the best locations for geothermal energy we will be able to increase the water output. While this doesn't sound amazing, it is the water that allows for Paulownia lumbers, and the salt production as well as very high level real estate projects. So the potential for growth is real and quite impressive over the next few decades."
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