McChip Resources Inc V.MCS

Intersting Find - Need tpo get into these financials

[schocor]

This looks like a company with more cash than market cap and a $500k a year revenue stream?!?!? Clearly I must be missing something - which I will find - because it looks too good to be true.

[35Freedom35]

Also looking in to this. so far it's looking like a solid buy at this price.  Have you found anything to not buy this stock?

[ekim]

A couple of fine print items...but other then that it is all good. The company will be issuing a dividend annually at between 8 to 10 cents for the next 8 to 9 years. Then that dividend will stop. The dividend is not eligible for the Dividend tax credit -- translation -- Fill free to buy MCS in your RRSP or TFSA instead of a non-registered plan as the income is fully taxable. They invest

[redcoats]

Just to add a couple of other fine points: The $500,000 is dependent upon the success of Altius. In other words, for the most part, this is an almost pure potash play. Nothing wrong with that, but just so you're aware.

[ekim]

The potash asset was a hidden asset for many years. They also have another hidden asset that you can't find anywhere in the balance sheets or cash flow statements. --> https://www.siskinds.com/baffinland-iron-mines-corporation/ The above class action lawsuit was certified in May of this year...which gives it some clout, but an as yet to be determined value. McChip held a lot of BIM

[schocor]

Developments Proposed Settlement, Claims Process and Opt Out Deadline A settlement has been reached in the class action. The settlement provides for the payment by the defendants of the total amount of CAD$6,500,000 to resolve all claims. The settlement is a compromise of disputed claims and is not an admission of liability or wrongdoing by Baffinland or any of the other defendants. The settlement

[3DThree]

There is a gold exploration / move towards production asset buried in there as well.   Interesting company.......just no liquidity.