Coda Minerals Ltd V.COD

FF response to COD today

[cincocinco]

Very direct and resonable argument laid out by FF today in their acquision effort for COD.  What I am sure that Nuemeyer wants to say, but is too smart to say in public (and the lawyers wont let him say) is that the SMC offer is also inferior for the following reasons: 1) SMC, and most Bharti companies, have a shamefully high burn rate and the money it will take to do a PEA at SMC vs a PEA at FF will be quite alot more.  2) SMC is already and again apparently making investments in companies with common shareholders that are questionable in nature not smelling so good.  3) That there will always be a Bharti discount to SMC stock price because he and his allies use the companies in dubious and mistrustful ways such as making loans to affiliated entities and then writing them off, as personal piggy banks, to fund other F&M companies, etc.  4) Even if SMC does succeed with COD, between the fees they pay themselves and the change of control payments they structure for themselves, more COD value will ultimately be for the benefit of management than shareholders (LFD). 5) AAB, a similar F&M vehicle, has traded at a significant discount for years, there is no evidence that this pattern would change for SMC.

Also, I have a hunch that Bill Pearson secretly would like the FF offer to prevail but doesnt have the influence to make it happen by himself.  Yet, he probably is the one that inintiated outside offers  for the benefit of COD. He is a stand up guy and knows the F&M shop is a tough place to do business. Even if he gets a good salary, FF would still need him as well to continue on with COD.  All this is just my own personal opinion and thats all.....