RE: Srott Resource CorpThanks for posting that info. Some points to ponder regarding SRC ...
SRC owns 22.5M common shares and 15.6M non-listed, non-voting convertible shares of WFE via their ownership of 71% of Orion prior to the merger. WFE has 86M shares outstanding (fully diluted) and therefore SRC owns 44.2% of the company. SRC has a board member, so they will have a solid impact on WFE path forward. SRC cannot sell any shares without WFE approval prior to 18 months from closing which was June 30, 2011, which takes us out to Jan 1, 2013.
SRC advise that their expectation for the sector remains positive, and must do their part to promote their significant holdings and will encourage WFE to do similarly. WFE has a brand NEW presentation on the website, so hopefully that will help the institutions, analysts and retailers to better understand the story.
SRC will NOT encourage WFE to sell the whole entity at the current time since the entity is too undervalued. WFE has a strong balance sheet, strong development plan and has proven that they have a strong technical development team. SRC may press WFE in future to sell assets that are not in the best interests to retain, or to farm out lands that WFE cannot prioritize or have not fully mastered so that they can get more cash flow. There is no need for a sale, rather it would have to be opportunistic, with strong business terms in WFE favour.
SRC would encourage a full sale if someone came along and offered $10/sh today. SRC seem to undertand that WFE will be nice and ripe looking out to Jan 2013, since that will be time enough to establish the growth cycle so the markets will finally understand the company value more properly. This will be the time to sell the company and perhaps $15/sh will be on the table if the markets are robust.
SRC will have a much bigger stick once Jan 2013 rolls around, and a much bigger incentive to have WFE promote the company. In the meantime, they will prefer I am sure for WFE to focus on performance and execution. If WFE deliver, and my bet is that they will, then we will have a very strong and very astute shareholder working for us on the business side.
Cheers,
dmacd