Spoke with Mohan
I had a lengthy discussion today with Mohan, by phone,
expressing some concerns and trying to get some indication
about where FRP is headed. I felt better after that
conversation.
First, I am disappointed that things did not work out
for FRP with regard to the switch to the technology sector.
They did have some good concepts and prospects, but
perhaps FRP's plans were destined to fail from the outset
since Mohan's expertise is mining, not technology or the
Internet, and he was not prepared - or there wasn't the
money to do it - to step aside and let someone else with
the expertise run the show.
I initially invested in FRP because it was (or was about to
become) a technology play. At this point, given the turn
of events in the marketplace, I'm not too disappointed that
FRP is re-focusing on the mining sector. Obviously the
tech bubble has burst, and the mining sector is probably
in the early stages of a potentially significant recovery
(everything does go in cycles). Personally, I've always
had an interest in mining (as well as technology) so
I'm looking forward to seeing what Mohan can pull off.
What's done is done, now it's time to move ahead.
By all accounts Mohan is an outstanding geologist. He is
very excited about the property in China, but admits FRP
cannot be a one project mining company (particularly since
its one major project at the moment is in a Communist
country). Gold is currently being produced at the gold
mine in China (small amounts), but what excites Mohan is
a new discovery near the area being mined, a discovery made
by FRP a few years ago. This discovery will need to be
drill tested and Mohan and others are very excited about
the possibilites. This is legit and it could be very big.
As Mohan indicated though, FRP must acquire another major
project or two, in North America, and this is what he is
going to do. The Company does have some cash in the bank
and some additional cash will need to be raised. I asked
if there were plans on doing a share rollback, he said
absolutely not, this will not happen. Mohan has the
ability to raise significant dollars for a mining project,
he has demonstrated this in the past, and he is intent
on turning FRP around in a very big way. He has supporters.
If there is a major turnaround in the mining sector, and
I think there's a good chance of that happening anytime in
the next year, then I think FRP could do extremely well.
I felt much more comfortable about FRP after that
conversation today with Mohan, I think any selling
of the stock you're seeing now or in the next while is simply
coming from frustrated investors who were in FRP for the
tech play and are not mining enthusiasts. Cheap stock for
those who are excited about the mining sector and have
confidence in Mohan's ability to make things happen.
Mohan has decided to go with his strengths and that's
probably a good idea.