Dear CUU disciples,
One cannot say that Copper Fox Metals is not publishing news in 2024! Wow, a flurry of press releases so far but no influence on the stock price, or minimal loss sadly.
Yet, the surprise appointment of Manuel Gomez to the Board of Directors this past Monday gives shareholders ample food for thoughts during this Easter long week-end.
Here are some sweet and sour options to consider:
1- Crucifixion: why is the majority shareholder of CUU, Ernesto Echavarria, bringing to the team one of his own right-hand men? Of course, in case you did not notice, Gomez is Mexican and graduated from a private university in Monterrey! So why him now? Why a trusted friend to the Board suddenly?
This raises the spectre that something strategic is brewing and maybe Ernesto needs another vote on the Board to get his way... and that could be worrisome. Why does Ernesto want more support (an additional vote)? Worse, what can he NOT vote easily on the Board at the moment which requires more firepower with Gomez? Let's hope this is not the case, but one needs to ponder every avenue... like an upcoming huge private placement with more dilution? Who knows. The question begs to be answered.
If CUU is only a cash cow for Ernesto and now is the time to plan an exit strategy, then he needs another Mexican accountant to accomplish his deed. Remember that he cannot just sell shares and take a huge corporate tax hit on his billion-dollar investment. So, what's cooking then? Chocolate can be dark and bitter, not just milky and creamy. Beware.
2- Resurrection: the press release clearly stated that the appointment of Gomez is "valuable for advancing the company's corporate strategy." YES! This could finally be an excellent outcome: put Schaft Creek on sale or split the firm in two entities and let's move on! If Gomez can do it after more than 10 years of idleness, he will be supported by most shareholders for sure, including me.
The other alternative might be that CEO Elmer Stewart is planning his departure from the company, and Gomez will be groomed to replace him in the long term. Who knows, Elmer is not a spring chicken anymore and a smart Board could be thinking ahead about this practical fact of life by bringing in one of Ernesto's bunnies...
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Therefore, if you have a serious interest in this firm, the arrival of Gomez is a critical move with some hidden (for now) agenda but with major consequences in sight. Nothing is done without a purpose by Ernesto, and having a second Mexican on the Board is absolutely no coincidence...
We die on Good Friday but we also resurrect at Easter!
Enjoy the holidays,
Amen