RE: HypothesisPeteyK,
Congratulations. Your post was articulate, you presented your case persuasively and your arguments are cogent. A fw comments...
"I will not get into a discussion about the loan because:
1, I do not engage in discussions with the "crew"
2, I do not know all the terms of the loan so I am not in a position to determine whether it is good or bad
3. I can not change anything about that loan, so any argument about it is moot anyway
4. I do not let "emotions" about a loan interfere with my
portfolio management, that's just bad business
5The fundamentals for a junior starting out towards production with justa fraction of debt compared to value is way better than most juniorstartouts, so what is there to argue about anyway?"
Well, I agree what is done IS done but your comment about not engaging the "crew" [I'm guessing those of us less than enthused about the Coalcorp loan] is moot. You have been engaging us - vociferously. As is your right. It is our right to disagree. That is why these board are or can be beneficial. If we all agreed what's the point of having these forums. And if some of my comments are in error, great, I'm happy to admit it.
For the record, until the Coalcorp loan I was VERY supportive of management and have no issues with the $2 million deal they negotiated. I would disagree with you as to Coalcorp being a "new" company with a fresh sheet. They could have and did not bring their financials current. To me that speaks volumes and tells me they are more than a bit dodgy. It's one thing to be in default on getting the financials to the exhange when you're broke and quite another to not do so when you can afford to. They are being delisted from the exchange and changing their corporate name. Changing one's name does not exonerate them from past misdeeds and a future owner has the obligation to make good on the prior owner's bad deeds. I would also remind you that that could be FCO in a few years, dodging their obligation to supply their financials. Remember, Coalcorp also had shareholders who have been left in the lurch and Coalcorp seems oblivious to their obligation - in my view - to do the moral and responsible thing. That is who management decided, of their own volition, to get into bed with. I doubt you would do business with businesses that conducted their affairs like that. I wouldn't - at least knowingly. That is why I am critical of that deal.
One last thing, perhaps you will agree. The share price of FCO is going no where [well, perhaps down] unless and until FCO management negotiates a financial package that is sufficient to build the mine and mill, a loan we can afford and a loan the 'street' looks at as good for FCO's future.
All in all, PeteyK, your best post ever - with some minor quibbles.