With all due respect, NOT's SP is almost certainly going to head north of $4 eventually and Rosseau et al will profit enormously, at a level in excess of that of ordinary retail shareholders like you and I. And by the way, this excess will come from our pockets.
Remember, Rosseau et al represent hedge funds.......known bottom feeders par excellence!! Imagine yourself Warren Irwin. You, Warren Irwin, know that NOT's assets are far more valuable under more stable/reasonable market conditions than the current market value suggests(he has been following the NOT forum for months). You have a fund portfolio to manage, which currently, on paper, is showing a dismal return to investors. These wealthy investors, individuals as well as institutions, are not too happy right now and are threatening redemption of their shares in the funds. You have cash in these funds. Why not pick up considerably more shares in companies whose SPs have almost hit bottom in your opinion and in your estimation are at ridiculously low price levels compared to the potential value of their underlying assets. Buy them on the open market....bound to pump up the price....you're not talking a few 1000........hmmm? Heh, easier to pick up that volume via a controlled PP with a locked-in low cost and including warrants. How do I do this as cheaply as possible? Influence the current BOD?....tried but failed :( !! Why not replace them with a hand-picked BOD who will be rewarded handsomely :) !! The new board could set a low price for the shares and a rock bottom exercise price under favourable conditions(not like the last time). Lets start a proxy war :) !! First, I need the support of "sister" funders, who like I, are in the same financial jam. No problem...... we hedge funders not only think alike but can smell $ and blood from 1000 miles away!! When I, and they my partners, win, we can then have the new BOD proceed immediately with issuing a PP et al, then take the cash from our funds, buy more newly issued NOT shares with warrants, whose exercise price is dirt cheap. This will accomplish three things.........maintain the total worth of our funds' portfolios (i.e. swap cash for shares), maybe stop the bleeding, average down our cost/share and perhaps reward IBK again for their loyalty with a "finders fee". Then when we exercise our warrants (not under the rules of the last PP for sure) when the share price increases, voila the performance of our funds will be restored to levels which will amaze and attract new investors. The fund(s) will increase in value and my management fee, based on a % of gross value of the fund(s), will soar!!! What a reward for one shrewd move...the market and metal prices rebound will do the work.......it's a no-brainer!!!
An added bonus, will be when one of the majors, lurking already, approaches us to do a private deal, boy will they be in for a suprise......what a premium we will charge. As to the rest of the retail shareholders, who cares!! Let them fend for themselves!! They should be happy, after all there were enough scraps left over to go around!!
Is my imagination in overdrive? Perhaps I had too many cups of java this morning!!
Respectfully submitted
geoprof
