Dear Mr YourFriendoDear Mr YourFriendo,
I received a private note from another bulletin board participant alerting me to the fact that you had authored what appeared to him to be an error filled attack post about my involvement with SCN.
I’m not sure what your fascination is with me but I’m afraid all of the facts contained in your post are inaccurate. My average cost on SCN is now negative as my trading of an incremental equity position as well as sales of bonds purchased at the time of the reorg has resulted in my having more locked in profit than cost on my remaining equity investment which is still 2.1m common shares. I intend to hold them for some time yet and continue to trade an incremental quantity of shares from time to time. In fact, I wouldn’t have sold my bonds at all but for a need for capital to do something in the carbon credit area.
Here is part of my post from last year which is the only other time I had discussed my position.
Contrarian's post July 23, 2020
“….I worked very hard to get my average cost down to about 16 cents on the shares (100k at $1.00 + 2m at 12 cents = 16 cents) and I did something similar with my bond position. In addition I traded an incremental equity position from about 13 cents, selling it yesterday at 21 cents, buying it back this morning before the meetings and selling it again around noon today. I trade actively and hope to find more opportunities to do so with this name."
So I’m sorry to tell you that you have presented the wrong average price, the wrong weighted holding period and the wrong return profile.
The reference to “torque” and the nickel price is frequently misunderstood by yourself and other posters. The “torque” to which I refer is the torque that a higher nickel price provides to the SCN cash flow stream. Of course, nobody controls what multiple is assigned to that cash flow stream and the resulting share price.
Let’s try and do better. Oh, and rebutt if you like but please know I won't participate.
C333