Ok, I was asked to look into this investment by my brother.
Originally, anything that looks this good is usually a scam, but the more I look, the more authentic it becomes.
My Dad was down in Mexico this spring and got to go to the office and get a tour of one of the bamboo fields. So there is an office, buildings, fields, bamboo, and employees.
Supposedly they are registered with CONAFOR and SEMARNAT. These groups ask me to call, and I do not speak Spanish (I can google translate for email, but I can't speak Spanish).
The owner has a seat on the New York Stock Exchange.
Supposedly most of the money comes from their plans to turn the bamboo into pharmacy grade charcoal, carbon credits, and a clothing line they have. They managed to get a bamboo strain with less "hollow" space inside the bamboo. Not to mention how fast bamboo grows in coastal Mexico.
Takes 15 years before you really start seeing the money back, although small amounts start coming back in the 5th year.
I crunched the numbers and it is coming out to each bamboo tree making $52 a year
(Breakdown for each individual plot (33 trees): $1964 - 12% fees = $1728 profit ($52 per tree)).
This number crunching came before Bamburain decided that it is going to increase each plot's tree count from 33 to 120 just to ensure they can give the money they promise (for no extra charge).
The unit price has gone up since I did the numbers, and is supposed to really go up shortly.
I cannot actually see anything that would point out a problem, and I am now quite interested myself.
Can anyone else spot a problem with this investment?