Begs the question....If COD is being sold for WAY under its true value, then SMC is buying an excellent asset for WAY under its true value. This begs the question, why not buy stock in SMC? After all, BEFORE they acquire COD, they have an $8M market cap and about $22M in equity, almost all of it in cash and investments. Highly liquid. Add to this, that they are acquiring COD for what twenty five cents on the dollar? It would appear that SMC is a screaming buy. Except for this: The cash and investments of SMC does not really belong to the shareholders, it belongs to management. That's how they think, thats how they behave. F&M pays themselves first, ALWAYS! Pays themselves from the company money. It is as if the treasury is for the benefit of management rather than the shareholders. It is their own piggybank. So, I conclude that probably half of the $22M will go to fees, preformance bonuses, change of control events, etc. etc. Things are not what they appear to be when you are investing in a F&M company. So, I will not invest in SMC for this reason. Just my opinion. But look at this:
The management company is well-known for its high fees, which sometimes upset investors. In late 2012, investors of Mr. Bharti's Sulliden Gold Corp. shot down a proposed milestone bonus program that would have entitled executives to up to $17-million in bonuses over three years for tasks that fell well within their regular duties. They included $2-million for completing an environmental assessment, $2-million for receiving environmental assessment approval, $3-million for completing land purchases, $2-million for signing an electrical connection agreement, $3-million for the start of construction, $1-million for the first gold pour and $3-million for the declaration of commercial production. Sulliden investors no longer have to worry about Forbes's bonus plan ideas.