RE: The Dundee/IMC dance Earlier, Telemarker kindly posted the following record of Dundee's recent acquisition of more than 3.5 shares of Woulfe at .28 cents a share, and an additional million in warrants for future stock purchases:
| Apr 26/13 | Apr 22/13 | Dundee Corporation | Direct Ownership | Common Shares | 10 - Acquisition in the public market | 3,528,000 | $0.280 |
| Jan 3/13 | Jan 1/13 | Dundee Corporation | Indirect Ownership | Warrants | 46 - Compensation for services | 1,057,500 |
This acquisition occurred at more than 33% above the then market price of the stock. With more than 40 million shares of stock, Dundee is obviously an insider with considerable knowledge. The CEO of Dundee, Ned Goodman, now sits as a director on the Woulfe Board.
As an insider with knowledge, I have to assume, of course, that Dundee is aware of Woulfe's entire future game plan, including how and when financing will occur and under what terms, the true intrinsic value of Woulfe's assets, the time schedule and feasibility of Woulfe's mining production start date, and all related information. I also have little doubt that Dundee, and Woulfe, are in constant communication with IMC and bank officials for coordination and orchestration of the Woulfe endgame. I presume this is why Dundee is satified to buy more than 3 million Woulfe shares at over market prices.Dundee well knows all relevant information there is to know.
My question is what is Dundee's ultimate objective with Woulfe? Is it: 1) Value driven, for long term investment gains?, 2) A short term investment for short term profits?, 3) Part of an overall intent of Dundee to acquire Woulfe?, 4) Some other purpose? After pondering this question, my attention turns to how IMC fits into this Dundee answer.
If not before, I am sure that a relationship and communication line has now been well established between the powers at Dundee and IMC/Berkshire. My question is whether that relationship, under the surface, is one of competion or cooperation concerning Woulfe? Is IMC OK with Dundee being "the" versus "a" major player at Woulfe? Or, will/does IMC/Berkshre intend to control the entire vertical tungsten chain (owning, mining, refining, sale of the raw tunsten product via Woulfe, and then retail manufacture, sale and distribution of tungsten tipped tools via IMC?
Berkshire is famous for buying well established, undervalued companies with a history of success, that are consistently well managed and profitable. Woulfe is nowhere near falling into this catagory. In contrast, Dundee is noted for investing in undervalued, junior mining companies with promise.
My thoughts are that, at least for now, Berkshire/IMC needs a guaranteed, cost efficient, long term tungsten source in Korea to feed its already successful IMC tungsten retail tool manufacturer. Dundee "needs" a promising, undervalued source of mining assets which can be developed with adequate financing that it (Dundee) can arrange. Thus, at least for now, I assume that Dundee and Berkshire/IMC are working together toward common goals. With both Dundee and Berkshire valuations in the multi-billions, I am certain neither has any true concern whatsoever about ultimate Woulfe financing. If they deem it in their interest, either company could finance, or arrange Woulfe financing, with a phone call.
For these reasons, I continue to be long Woulfe. In the meantime, I assume that Dundee and Berkshire will decide, or have already decided, how this Woulfe story unfolds and matures. In the meantime, we retail investors will just have to guess. But, one way or the other, I think the company has a bright future. Have a great day. Seg.