RE: RE: FCO Email i recieved this morningJohn how do you know there is a problem getting the financing? I realize you have an opinion of the coal corp deal, and you are entitled to that, but what do you know about financing problems? Or is that your opinion?
When you buy a car or an appliance, and you take out a loan to pay for it, do you leave the car on the lot for for a few months and tell the dealer I'll come back and get it? Not likely. So should FCO begin paying interest on a large loan for a few months before they actually need the money? Why spend the interest money? Why spend shareholders money that way? Without some progress report from Phase II, how do you know where the project stands? FCO already has the pre-fabricated mine buildings on site, the red iron is clearly visible on the semi trailers. So pouring a concrete pad, and erecting the buildings can be done with money in hand, paying iron workers to put up buildings. So I'm not seeing where the "no financing available" is accurate at this point, but that is my opinion I guess. And I think it may have been factsrbest that said nothing can be released to the public until after it is official, that means signatures on all the dotted lines. One can only imagine the mounds of paperwork and time required to close this deal. I have taken out commercial loans before and the paperwork was at least twice that of a residential mortgage.
Before you ask me, I have no opinion on the Coal corp deal. I was not at the table during any negotiations, so I have no more facts than what was released to the public. And since I was not at any BOD meetings before the deal was made, I can not say whether it was or was not the right direction to take. If the Coal corp deal turns out to be nothing more than a short term loan that's repaid ahead of schedule, then was it a good deal? Time will tell I suspect. I know I have taken out a loan before and used the proceeds to pay off another loan that is charging me a higher interest rate. Home refinances come to mind when interest rates drop. Just a thought.
And I don't have an opinion on management getting paid either. Probably some of them have families. I just don't think it warrants the attention it has gotten up to this point. Again that is my opinion.
It is also my opinion that management should not be making long term decisions based on the short term price of their stock, to me, that is a "Chicken Little" style. It never works, and in the end you ultimately fail miserably. As you are well aware, we all are, stocks go up and stocks go down. No one cares for the down part, everybody loves the up part. Stay tuned.