Exchanging e-mails with MineralfieldsOkay, everyone, get ready to post all night about this. I am off to work, so I can not join you, but go to it. At some point you will also see the phone number of John David at Mineralfields. You are welcome to phone him, I say, because you are a share holder of a company he is a share holder. Just be polite and don't swear.
Anyway here we go: a series of e mails starting with mine.
Dear JD:
I am an investor with a considerable amount of cash to sink into the market. I was noticing that your company was a big player in the Venture exchange in Canada.
That excited me because the Venture is at an all time high and seemingly everyone wants to put their money in the exchange.
I then compiled a list of companies that you are financing and investing in and I was more than ready to phone you and put a lot of money into your company at Mineralfields.
However, I am having a hard time reconciliing the long list of companies that you support with the stock price of said companies.
Here is a list of companies that I researched and found them to be wonderful companies with outstanding fundamentals: GNH, NBU, MNV, PGC, MAM, TWD, SXL, BRU, MTB, DEC, CDO, EFG, to name a few.
Much to my chagrin though I noticed that all of these companies are struggling mightily with their share value. There are many Venture companies whose charts look like arrows to the moon, but your charts look to be like shovels dug into the ground.
Lithium, rare earths, gold, silver, copper, all very hot right now, but somehow your companies with those commodities are not.
Why would I invest my money into your company if you don't seem to have the ability to back companies whose share value increases, instead of decreases? Just to look at the charts of just about every company that you back, you seem to be failing terribly with so many of your companies near 52 week lows in a very good marketplace. That is a sad indictment on Mineralfields.
Please explain why your companies are doing so very poorly, or I will invest my large sum of money somewhere else.
Thank you for your time
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Hello, please review the tab “Performance (NAV)” on our website, we have the best flow-through track record of investor returns in the industry, for example, we just rolled over an LP @ $14 per unit, after 5 months, with an initial cost of $10 per unit. We hold positions in hundreds of companies.
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this is me again:
But the companies themselves that I mentioned are doing poorly. How are you able to achieve results like that with the actual companies that you are invested in not doing very well?
And is it not in the best interests of you and those companies over the long term to do well in the end?
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this is jd again
As a matter of logic, if our NAVs are doing great, then the sample of companies that you identified is not representative of the the entire portfolio. Having said that, we invested in these companies because we believe in them and think that the market will come around and recognize their value sooner than later, so stay tuned.
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and me again
Pardon me, I have another question and fired off my e mail too quickly. I have 200 thousand dollars to spend here, so I want to get this right.
I can see your results, but there is something that is just not quite right about the business model that I still need an explanation for.
You are making good money, but I am having difficulty seeing the sustainability of it, because the actual companies in large part are not succeeding as well as you are when you finance them. Do you not foresee difficulty down the road if the company that you do the flow through with struggles to increase its own share price?
And finally, what type of return on my investment can I expect within a year and how long do you require the investment to continue? What is the committment time to you should I want to move the money out of Mineralfields?
Thank you for your time.
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and jd again his response is in capitals
Pardon me, I have another question and fired off my e mail too quickly. I have 200 thousand dollars to spend here, so I want to get this right. – YOU ABSOLUTELY SHOULD
I can see your results, but there is something that is just not quite right about the business model that I still need an explanation for.
You are making good money, but I am having difficulty seeing the sustainability of it, because the actual companies in large part are not succeeding as well as you are when you finance them. Do you not foresee difficulty down the road if the company that you do the flow through with struggles to increase its own share price? – WE HAVE BEEN DOING THIS FOR TEN YEARS, AND WE DON’T EXPECT MOST OF OUR INVESTMENTS TO MAKE MONEY FOR US, IN FACT, WE EXPECT MOST OF THE STOCKS WE BUY WILL STAY THE SAME OR GO DOWN IN VALUE. HOWEVER, IT IS THE STOCKS THAT GO UP, AND GO UP A LOT, WHICH PULL UP THE ENTIRE PORTFOLIO, ESPECIALLY SINCE WE NEGOTIATE HARD FOR ADDITIONAL WARRANT SWEETENERS (JUST LIKE WHEN WARREN BUFFET FINANCED GOLDMAN SACHS J
And finally, what type of return on my investment can I expect within a year and how long do you require the investment to continue? What is the committment time to you should I want to move the money out of Mineralfields? – IT IS ILLEGAL FOR US TO PROMISE YOU ANY SPECIFIC RETURN, BUT WE ARE PROUD OF OUR TRACK RECORD AND POST THE RESULTS OF EVERY ONE OF OUR FUNDS GOING BACK 10 YEAR.
Thank you for your time. – OUR PLEASURE
I see the postive NAV result, but long term, a negative stock bias for the companies that you are doing flow through with would be a negative for Mineralfields, no?
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this is jd again
I forgot to mention, for investors who get into our current limited partnerships, the commitment period could be up to one and a half years or so, but we have a history of winding up our funds way ahead of schedule.
I will give you an example of a past winner for us, RSC (Strateco), we bought it for 15 cents, with a full 20 cent warrant, and were able to sell the stock from $2 to $4. We have had many “ten baggers”.
John David
(416) 690-0078 (direct)
(416) 898-1187 (cell)
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this is me again:
Thank you for your time today. I have appreciated it.
However this sentence that you have written puts quite a fright into me:
WE HAVE BEEN DOING THIS FOR TEN YEARS, AND WE DON’T EXPECT MOST OF OUR INVESTMENTS TO MAKE MONEY FOR US, IN FACT, WE EXPECT MOST OF THE STOCKS WE BUY WILL STAY THE SAME OR GO DOWN IN VALUE.
I would like the companies that I invest in to be proud that the companies that they are invested in go up in value. I would prefer for you to say with pride that you back companies that go up. If you proclaim that most of your companies go down in value, this I can not reconcile as a good business model.
I am not willing to invest in this environment and I wonder when you do a flow through with a company if they are as aware as you are that you do not expect them to go up in value.
This is not a business model that I can back, but perhaps you could lead me to some other companies like you that have expectations that the companies that they invest in can and will go up in value and receive the full support of the backer who invests in the flow through.
Good day.