RE: RE: RE: did you load up agian Deans Knight Capital Management:
LionOre Mining:Out of favour company in an out of favour
base metal industry
•LionOre was an international nickel mining company with production in Botswana and Australia
•Nickel prices dropped to $1.75 per pound following the Asian Crisis of 1997
•We began building a major position in 1998/1999 as low as
.51 per share
•We accumulated large amounts of stock at $5 per share or 2.5 times cash flow in 2006
•LionOre was the subject of a bidding war in the spring of 2007 between Xstrata and Norilsk Nickel, which saw Norilsk acquire LionOre
Algoma Steel: Overlooked company in the public market
•Algoma was a steel producer that emerged from CCAA bankruptcy in 2002 as one of the lowest cost steel producers in North America, with a new CEO and a strong balance sheet
•We were able to buy the Company as low as 0.3 times book value because the market still considered Algoma a bankrupt company
•2002 sales were $1.2 billion, market cap went as low as $30 million
•Within 3 years, Algoma was generating cash flows of $400 million
•We accumulated shares at prices ranging between $2.80 and $8.60
•We sold our position in March 2005 for as high as $39.80 per share
Mantra Resources
•The founders of LionOreMining (a past investment of Deans Knight) brought this ASX-listed uranium exploration company to our attention when few others were aware of it
•Deans Knight began investing in Mantra in July 2008 for as low as
.75 per share which valued the company at $100 million
•In February 2009, the initial resource was estimated at 36 million pounds of uranium
•Today, Mantra?s MkujuRiver project in Tanzania has an inferred resource of 101.4 million pounds of uranium, from only 3% of the project?s prospective land base
•Based on the pre-feasibility study, the resource can support production of 3.7 million pounds of uranium per year at an operating cost of $25 per pound. The uranium spot price today is $59 per pound
•In June 2011, Mantra completed a transaction whereby the Russian uranium company, ARMZ, purchased the company for AUD$7.02 per share.
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A $1,000,000 investment with Deans Knight in 1993 would be worth $22,700,000 today, more than 4 times the value created by the TSX Composite:*
https://www.deansknight.com/pdf/Deans_Knight_Marketing_Presentation_June_30_2011.pdf
Yes, it's a horrible idea to invest in a company when the stock price tumbles.