RE:RE:RE:RE:RE:RE:Management Information Circular Released Last NightIndeed he does. Warren Buffett has evolved from being a deep value investor to being an investor in good companies (with economic moats) at fair prices. This situation is not that. It is a deep value investment, with a torqued balance sheet. As I have said in previous posts, in my opinion top management is a "risk". However, I reiterate, that does not mean that I am not going to make a lot of money from investing in the common shares of Sherritt.
As I believe I have disclosed before while I do a lot of my own work, I'm also a long term customer of Scott Leckie initially at Aquilon Capital and now at his current firm Takota Asset Management. Over the years Aquilon and then Takota has made numerous investments in the various components of the Sherritt capital structure for myself and their other customers (and themselves). From my recollection highlights include:
Holding a significant weighting in Sherritt International from $3.00 in 1998 until he sold it at $17.00 in 2007
Trading spin off Westaim at least 5 times for multiple wins - multiple multi bagger wins
Investing in Sherritt Power and then negotiating a buyout exchange ratio with Sherritt that benefited all Sherritt Power shareholders
Buying Dynatec for pennies and selling into Sherritt takeover bid in the last nickel run up
Buying 20% of the discarded Westaim shell below cash and selling for 3 bagger return when they got into the insurance business
More recently buying Sherritt debt at .40 on the $1.00 and tendering to their recent offer at .95 cents
Today they own the stock and warrants. I don't think that they believe that the share price is going back to $17, nor do I believe that they are particularly enamoured of top management. From what they have published I know they did not agree with the dilutive equity deal or recent compensation policies BUT they own the stock and I know that they think they are going to achieve yet another capital gain from holding it as the nickel cycle matures.