Woulfe Mining Corp WFEMF

RE: sold all

[Raptor7]

Suffice it to say that Resinco's recent success or lack of success has largely hinged on Woulfe Mining. The one constant has always been Resinco trading at a steep discount to its NAV. I too was once intrigued by this. Unfortunately, this ever present discount is unlikely to change and I think those who see it as a short-term buying opportunity are going to be disappointed.

If you ask me, publicly-traded holding companies like Resinco seem little more than vehicles to move public funds into the hands of a select few individuals who run these companies. Resinco has 123 million shares outstanding so based on their recently announced NAV of 10 cents a share this reflects a current value of $12.3 million, a two-bit speculative mutual fund if you will. Their investments haven't performed well and on the heals of their announced 1 for 3 consolidation you can almost bet that they will soon be going back to Johnny Q. Public to tell him what a great opportunity this company's early-stage expertise offers and then they will ask him to participate in another financing.

How much should shareholders be prepared to pay for managing a two-bit mutual fund? MER's for most mutual funds run 1.5% to 3.5% but this one being small you got to know costs will be much higher. So what's reasonable? Me personally, I'm not interested in paying a whole lot more than what mutual funds charge because I already know how onerous it is for mutual funds, even ones with very low MER's, to overcome these charges and outperform the broader markets. The higher the costs, the more onerous the task. And on that note, I suggest people look at RIN's long-term share price performance.

Resinco's financial statements from the last couple years show the company has spent anywhere between $2 million and $3.5 million annually to ascertain John Icke's $280,000 annual salary, maintain a Technical Advisory Board, reward performanced-based compensation, keep the lights on and whatever other expenses might be necessary to keep an operation like this afloat. That by my calculation is some 20% of current NAV annually. Can you say DEPLETING ASSET? So the company requires about a 20% rate of performance only to maintain its current value, a pretty tall order for anyone to achieve.

Personally, I'm not interested in keeping Mr Icke's vehicle fueled. If anyone is interested in RIN just because of their investment in WOF, I suggest they stick with the real deal. There's enough asset depletion at WOF (salaries, stock options, etc...) without signing up for another 20% annually by buying through Resinco.