Tuesday, June 3, 2014

Great Plains Holdings, Inc. (GTPH) Combines Strong Cash Position & No Debt Model with Insider Skin in the Game to Accelerate Acquisitions

Great Plains Holdings, which is primarily focused on acquiring multiple revenue streams via the snapping up of profitable private businesses from the large number of retiring baby boomers, currently operates via its two wholly-owned subsidiaries, maker of the “LiL Marc” plastic potty training urinal for boys, LiL Marc, Inc., and a real estate subsidiary targeting income producing properties throughout the Midwest, south, and southeastern U.S., Ashland Holdings, LLC.

With about 5.5M more people leaving the labor force since 2007, around roughly 62% of whom are retirees, there has been a boom in small private businesses going onto the market. Ashland Holdings strategy is to acquire, develop, own and manage such properties, primarily in growth areas like self-storage ($24B a year in the U.S. alone during 2013) and triple net properties (NNN leases, where property taxes, insurance and maintenance are paid by the lessee), as well as the broader residential areas, like apartment buildings and manufactured home communities for 55 and up seniors. Plans are already in the offing for Ashland to construct a self-storage unit within the year in order to increase the company’s hard assets and cash flow.

The latest addition for Ashland is a private placement investment with TexStar Energy Corp. on the 150-acre Engleke lease in Guadalupe County, Texas, which has roughly 3M bbls of estimated oil reserves, 14 producing wells and which is ripe for enhanced oil recovery implementations. This move boldly marks the company’s entry into the energy market with a nice net revenue interest return on the lease and, as there are around $300M worth of oil estimated for Engleke, output boosts from the application of enhanced recovery techniques should add considerable fuel to the company’s acquisitive fire.

Furthermore, the pace of expansion GTPH has been able to achieve in recent quarters signifies to investors that the company is more than able to successfully execute on their aggressive growth strategy, despite maintaining a debt-free business model with around $1.3M in cash on hand (as of March 3, 2014). Operating expenses are rising in proportion to the company’s implementation of their aggressive commercial real estate diversification strategy and increased sales and marketing efforts in the LiL Marc brand, but with the company’s executives having so much skin in the game via sizeable early capital injections, and the fact that they are not taking any compensation, GTPH’s aggressiveness is paying off in terms of sheer momentum.

The recent exclusive QualityStocks interview (http://www.qualitystocks.net/interview-gtph.php) with GTPH’s COO, Denis Espinoza, paints a very bullish portrait of the company’s prospects. From the increased marketing and sales efforts with LiL Marc that are designed to capture more of the growing potty training market, which sees upwards of 2M boys born in the U.S. alone each year, to the company’s growing, but already strong, real estate portfolio under Ashland. Ashland’s portfolio contains the company’s recently renovated (ahead of schedule and under budget) 1.4k square foot corporate office building in Wildwood, Florida, whose overhaul also alleviates the $12k annual warehouse leasing expense associated with LiL Marc.

For more info on Great Plains Holdings, visit: http://www.gtph.com

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