Interesting dynamics I've taken a lot of abuse for being so negative on NW gambling on Mongolia. Unfortunately it appears as if I'm a lot more right than wrong. I say this as I have a very large postion in what I thought was a low risk way to get exposure to the PM market. To say I am unhappy about this is a gross understatement.
I believed in NW resume @ SLW and his penchant for making savvy low risk deals. I now wonder if success has gone to his head and if his critical analysis skills have been subjicated to his ego. Maybe he is surrounded by yes men that cannot or will not tell him when he has a terrible idea.
I will certainly not be selling my shares, going away, or be intimidated into silence at least not until I can get a lot closer to even and recover a reasonable portion of my capital.
I appreciate unlimited, elmo. lencho, Zen and some others are being more openminded critical thinkers. After all this is OUR money we are talking about. Our money we entrusted to NW to manage as our fiduciary. None of us expected all the deals to work out but I did expect NW to be a prudent steward of investor capital. Mongolia/Entree fails on virtually every common sense level.
Some people now understand that no deal of significant capital is warranted in a place like Mongolia (Russia, Venezula, Argentina, etc.) is worth doing. For example, a Mongolia deal, if done at all, should be one of our smallest deals.
Some people understand the concept of discounted cash flow.
Some people understand where we are in the food chain with Entree.
Some people understand the concept of opportunity cost.
Some people understand that waiting ten years for cash flow is unheard of in virtually any for profit venture.
Some people understand the large, permanent financial damage that can be done to a brand by bad behavior.
Then there are others that don't seem to get any of this and simply worship at the NW alter. And it seems NW doesn't truly understand some of these points otherwise he would not have gambled away so much of our capital. He just borrowed almost two years of cash flow on a reckless bet on Mongolia/Entree.