RE: bwn strangenessNote that the private placement offered at the end of 2005 was filled in almost no time, that in fact it was expanded due to demand.
I was wondering about insider sales in earlier posts and so went and looked at news releases - From nov 2005
As a result of this acquisition, as at Nov. 10, 2005, Mr. Inwentash, together with his joint actors, has ownership and control over a total of 1.1 million stock options of Brownstone and a total of 7,141,935 common shares of Brownstone (such convertible securities and common shares representing 47.5 per cent of all issued and outstanding common shares of Brownstone as at Nov. 10, 2005, calculated on a partially diluted basis giving effect to the exercise of the convertible securities only). Of this total, 1.1 million stock options and 4,033,175 common shares of Brownstone are held by Mr. Inwentash directly (such stock options and common shares representing 29.6 per cent of all issued and outstanding common shares of Brownstone as at Nov. 10, 2005 (calculated on a partially diluted basis giving effect to the exercise of such stock options only).
These guys have alot of their own money tied up in this, and they have a rep for making money - lots of money. Ignoring that though, add up the actual number of shares and the market value of the options that they hold and we are very close to the market cap for this company even after todays nice increase. Look at the quarterly profit this company has put down in the last few quarters 5-10% PER QUARTER, a few options are worth it, especially as that means that they don't make money unless shareholders make money - these options were underwater until yesterday. Nothings guaranteed but I feel better when management doesn't make money unless the share price goes up - alot more than it did today.
As for close ties - they are under scrutiny as part of their exchange listing, and have reputations that are more valuable than the few dollars (relative to their current net worth) that they could squeeze from any wrongdoing. I like the idea that they think that the stock is so cheap that they consider it a good investment for another investment company. -
I do own BWN and am happy with progress so far - this was and still is a good buying opportunity, nothing has really changed since it was at 2.60+, just someone rebalancing their portfolio, probably dropping stock for the profit from the $1 private placement and saving the warrants for the long term free ride. They make money and I buy shares cheap - gotta love free enterprise:)