Cameo Industries Corp - Ordinary Shares CRUUF

EDV

[Alex_27]

Real_economics, obviously you have not done your DD yet anyou are wrong on most of your points.
Severstal bought their stake in HRG at 20 cents in November 2008 (easy to check at hrg.ca), not 15 or less as you say. It is true that the sp is in 60-70 range now, that is because they turned the distressedcompany around and now it is cash positive with manageable debt. Anyway, the spis at risk because there are many potential sellers (funds holding 15% of thecompany) and no significant buyer. Looks like Severstal is not going to buy thecompany out at these prices, so downside clearly exists.
Now, if you compare HRG to CRUR. HRG produces around 300 kOz and their EV is around $ 560 m, or 1866 $/Oz. That is less then the multiple for CRUR based on the Severstal offer, so you cannot say that CRUR will appreciate the same way. HRG was way, way cheaper when Severstal bought their 53% stake.

Now about Etruscan. You probably did not bother to look at the chart. Endeavour announced their intention to buy the controlling stake in EET on October 23, when the sp was 57 cents. Guess what, now it is 41. Nice job of turning the company around, uh? I’ll give them more time to do something, but did you notice any promotional press release since they got the control? Please find one.
I’m skeptical about EET because to turn a mining company around you need two things, cash and technical expertise. Endeavour has none of it. They have already spent all their cash acquiring CRUR stake. That’s why EDV itself is traded at discount to its NAV.

When I said EDV were sellers, I referred to CRUR, not to EET. For your convenience there is the link where they say they are sellers.
https://www.endeavourfinancial.com/s/News_Releases.asp?ReportID=386687

Buyer would never publicly say that their target is undervalued. And the amount they bought to justify the press release is laughable, 0,05%, and that’s for the company that already owns 38%! They want to get out, but they hope the Severstal offer will be sweetened. They cannot afford the bidding war because they have no cash.

Now Coalcorp. You are saying that thisinvestment is not significant. It is so now, because they destroyed all the value since they got in. It probably was their largest investment in 2008 and they put their people on CCJ board. Investors that followed EDV in CCJ were wrong, and it did not worked well for EDV shareholders neither.

So, what the history of EDV teaches us? There are two possibilities. EET-like when the weaker shareholder (Mr. Finsky) gives up and there is not much happening to the sp, or, CCJ like, when there is a conflict between two large shareholders leading to litigations and total destruction of the shareholder value.

Of course all of this does not matter ifyou believe in $1 for CRUR share. In this case you deserve to loose your money to learn the lesson. 2+ billion shares outstanding, wake up people!