Rocky Mountain Liquor Inc V.RUM

Insider buying - 200 000 shares at 0.20$

[Fansse]

What do you guys make of it? 

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Jonathan Armoyan ("Armoyan") announces that he has acquired ownership of 200,000 common shares of Rocky Mountain Liquor Inc. (TSXV: RUM) ("Rocky Mountain"), with its head office at 11478 149 Street, Edmonton, Alberta, T5M 1W7, for an aggregate purchase price of $40,000 ($0.20 per share).

Immediately before the acquisition, Armoyan owned 4,700,000 common shares of Rocky Mountain, representing approximately 9.90% of the issued and outstanding common shares of Rocky Mountain. Following the acquisition, Armoyan now owns 4,900,000 common shares of Rocky Mountain, which represents approximately 10.32% of the issued and outstanding common shares of Rocky Mountain.

[jcorobow]

Appears to be a good thing. Clearly this guy already had a substantial holding in the company, but felt it was necessary to take himself over the 10% hurdle and is now a registered insider. He appears to be from the east coast, just like the family that started the company.  The real implication is that there is now a publicly disclosed minority shareholder with 10%+. THis is significant

[SomeGainNoPain]

To me this is a game changer. It seems to me that the Armoyan family is in the center of the shareholder value enhancement process. This changes my thesis of a quick sale at around 26 cents, the Armoyan family usually gets in and looks to realize a 2x,3x or more profit from their entering position, so now I think they will be on the board with new ideas, animal spirits, and a drive to take this to

[Fansse]

Can't wait for the next ER. What's your PT? Also, knowing not much about the Armoyan family, they have an history of doing turnarounds? 

[SomeGainNoPain]

The Armoyan family are value investors with deeeeeep pockets. They have a habit of finding undervalued stocks and helping the value get unlocked. Look at Armco Capital for examples. Jonathan Armoyan would be acting on his own account, according to the NR, but you know the saying, apples don't fall very far from the trees: I would expect the same pattern as what Armco usually does to apply. Now

[Fansse]

Man, thanks for the inputs, I really appreciate it.  I'm wondering, with the amount of shares he owns, does he have any inputs with the management at all or not. (I'm not sure if that's unethical or not) I'm curious if he wanted to protect his downside by owning over the 10% thresold or because he genuinely wanted to add more to his position. In the big picture, 40k worth of

[jcorobow]

Yes, his most recent purchase would have liklely been to take him over the 10% hurdle. Means he now has rights as a registered minority shareholder. 

[Fansse]

Looks like there are new insider filing and he added to his position at 0.22 and 0.21 for 20k.