Post by
victor2009 on Dec 07, 2010 2:29pm
Update?
I won't bother responding to doingthejob/aatozz. He has been laughed off the forums of his company of choice, and unfortunately will likely use this forum to prattle on about anything that he feels may upset LBE supporters. Regular readers know his agenda. Any new readers that are wondering about this windbag can get some insight as to his credibility by checking the T.ISM forum.
In my opinion we are at a point that communication from the interim CEO is overdue. He must realize that Gary Nash's departure was cause for concern for many of the "ordinary" shareholders. The news release covering the departure provided no details, which may be understandable. Personally, I think that it would have shown some class to express some recognition and Thanks for Gary's efforts. However beyond that, some time may have been required to get familiar with the territory, before making further comment.
Soon it will be a month, since this change. The new CEO, I would think had some knowledge of the company basics prior to the announcement date, and has now had enough time prepare some meaningful communication to the shareholders,and public. We may never be informed of the reasons that the powers that be relieved Gary of his duties; and most certainly will not, if there is any ongoing dispute regarding settlement terms. But there is other information that could be made available. LBE is at or near, a point that McWatters will be at more profitable production levels. Concentrate production levels could be disclosed. Someone in the company is aware of this kind of information on a daily basis, it doesn't take a familiarization period to be able to give some guidance on progress in these areas. If it's bad news, breakdowns or operational problems, so be it. It's going to come out sooner or later anyway, and it can't do much more damage to the share price than has already occurred.
It's not so much that the average shareholder can't survive without being provided with interim tonnage figures, that many may not be able to put in perspective. It's the principle of the thing. Some sort of general communication would show that the company has some respect for some of the little guys that have supported the company for years. This group have been spoiled, for the past five or so years; it's understandable they are getting antsy over the dead silence since November 10. If minority shareholders are in the future of this company, LBE would be well advised to consider their information needs, it will be hard to maintain the excellent communications of the past, but let's not drift into the indifference that is shown by too many public companies.
Another thing that we should be looking forward to before very long, is some transparency on the intentions of Jilin Jien. JJ doesn't have to say a word in this regard, but they did set a precedent in the past. Gary Nash outlined the goals as to retirement of debt and redemption of preferred shares. JJ stated in a Press Release that they supported this plan. A number of shareholders had reason to believe that JJ's intention was to participate in Liberty Mines as a functioning Canadian public company. There was the belief that Jilin Jien's goals for Liberty were similar to those adopted by Gary Nash before their involvement. If this is not the intention of Jilin Jien, then they will do what they please as far as transparency. However if Jilin Jien does in fact intend to continue to operate as a public company, it would be advised to give some guidance, because if nothing is said, investors will assume the worst on dilution and going private. Gary's departure has added a number of shareholders to the list that are concerned in this regard. A Press Release indicating their intentions could allay some of the concerns, but to provide more comfort, more concrete actions would be desirable. There are a number of things that could be done, all dependent on JJ's intentions. The first thing, in my opinion, would be to restructure the debt to repayment dates that are achievable under present circumstances and forecasts, and alter the conversion options accordingly - or eliminate them. I will not pretend to suggest any detailed restructuring of debt or preferred shares. The point I'm making, is that if it is thought to be beneficial to maximize the market price of shares, the present structure is inflicting a sizeable discount - quite possibly without any meaningful benefit to Jilin Jien. Anything that can be done to reduce the concern over dilution (and going private), will enhance the share value. Maintaining Jilin Jien's position, and enhancing share value is not necessarily mutually exclusive.
The bashers and critics belittle anyone that would invest in a foreign controlled company. The disadvantages they throw out are over-stated, either through ignorance or intent to deceive. There are hundreds of examples of such companies that wish to access the public capital markets, that have been excellent investments for the average investor. If Jilin Jien's intent is to become one of these companies, it would be beneficial to make that intent known.