Post by
YoungInvestor89 on Feb 10, 2018 11:46am
BNP - January 2018 - Letter to Shareholders
Posted from another forum. BNP Resources Calgary, Alberta January 28, 2018 RE: January 2018 - Letter to Shareholders Dear Shareholders: The purpose of this monthly letter is to bring BNP shareholders up to date, on issues and news, since the last letter. 1. The following is a summary of business development activities and research for this month: (a) Ottawa Senators Owner is considering moving the team if attendance doesnt improve, but is not willing to sell the team. I believe that Quebec City would be a much better venue than Ottawa. Calgary Flames No deal yet with the City of Calgary on an arena, puts the team at risk to leaving Alberta. (b) Ambassador Bridge Plan on opening discussions during Q1-Q2 with current owners. (c) Hotels and Real Estate Had first meeting with bank to discuss financing requirements for new build versus purchase of existing hotels in Central Alberta. Focus on serving Alberta domestic oil industry. One of our 9% shareholders suggested looking at existing public hotel companies include GUS and Regent, as possible acquisitions in the future. In addition Lakeview Hotels (LHR.V), GUF.V, RRR.UN, RPP.V have potential. I will start working on the hotel business plans over the next quarter, after hearing back from the bank. This would be a business in which we could possibly utilize our $13 million in tax losses. Thanks to our shareholder for the good leads. (d) Gas Stations Had first meeting at bank to discuss investment in gas stations. Our focus is higher volume stations with airport locations, catering to rental car returns. The Calgary airport does not yet have a gas station at the airport. The land lease requirements at the airport make financing a little more complicated. 2. The following is US business related news, over the month of January: (a) William Bain passed away this month. Mr. Bain was the founder of Bain & Company and mentored Mitt Romney in his early years. Source Wall Streeet Journal 20 Jan 2018. (b) A Philadelphia refinery has just filed for Chapter 11 Bankruptcy, due to their inability to blend fuels with ethanol, forcing them into buying uneconomic carbon credits. Source Wall Street Journal 23 Jan 2018. (c) Newell will be selling off the following businesses: Rawlings (baseball gloves), Goody and US Playing Cards. These are lower growth steady businesses, that would be suitable as BNP acquisitions, once we reach Gate 2, for the equity raise. Source Wall Street Journal 26 Jan 2018. (d) Casino The Revel Casino in Atlantic City, New Jersey, was sold for $200 million US. Original cost was $2.4 Billion, and it will be rebranded as the Ocean Resort Casino. This casino has 1,399 rooms on 20 acres. It appears that Atlantic City is coming back. Source Wall Street Journal, 9 Jan 2018. Funding is still the primary focus. I will continue working directly on developing the deals, as I have done previously. In addition, I will also take on the responsibility of being the financing agent. We will continue working with our existing agent, and will consider working with new sources of financing, including the Alberta banks for hotel mortgage financing, in order to consolidate Alberta hotel and real estate ownership, with a single owner. Trump Tax Plan: I met with an accountant regarding the Trump Tax Plan. He was quite excited with the new 21% rate and expects to be quite busy with corporate taxes throughout the year. Taxes are due on April 15th and he expects the deals to start this summer. The 21% rate is not eligible for LLCs, and small businesses, but applies only to C-Corps. Personal tax gets simplified and corporate tax, gets more complicated. The carried interest benefit for hedge funds stays in place, resulting in very happy Greenwich, CT, based hedge fund managers. Campbell Soup is closing their Canadian plant in Toronto, and moving operations to the USA, as a result of the tax deal (and low Canadian sales growth). We continue to work on plans to recapitalize BNP, and to get the shares trading again. I welcome discussions with shareholders, if you have any ideas, leads or just want to say hello. Im as motivated as all of you to get this little company trading again, with a goal of ten cents per share. Ill be asking the board of directors to maintain my salary at $1.00 per year for 2018. I believe that Im currently being overpaid, but hope to have some better results this year. No bonus for 2017, as I did not meet my goals. Hope that 2018 is better. Our monthly costs are about $150 for the storage locker and annual filing fees are about $100.00. Yours truly, James Doody BNP Resources