Hi Koan,
A couple thoughts in reply.
I don't believe Vic is right at all on SH. My hunch is he's motivated by other considerations. Further, he's had his eye on the wrong ball. He should be watching the group of companies not just one of them. I do not believe PFN will be doing a PP in the near future for several reasons I'd rather not mention.
Regarding these participations, they are now very common for companies on all Canadian exchanges. One reason for it has been the difficulty in arranging financing through brokers. As management has arranged these participations and been directly involved, their interests change. Arranging maximum funds for corporate treasuries becomes only one part of their thinking. Getting a good deal for themselves also becomes important. It's only the amount of self-interest which varies from group to group. With some like Barr's group, it's a big factor. However, I'm sure they could argue otherwise.... and also be right.
<<< Kaiser... speaks to the demise of the CDNX >>>
The demise of Kaiser might be more appropriate. Check a little deeper and you may see another conflict of interest with newsletter writers. They are less regulated than companies yet can wield major influence. They often have their own axe to grind. That's why I mentioned Bunka and Khanna and their financial backing by Barr's group. I've nothing against them but wouldn't expect unbiased reporting from them regarding Barr and his companies. However, at least their relationship is transparent. Not so with many others.
There's a lot of information to those who want to find it. On the corporate and regulatory side, much is filed at Sedar. com and easily accessible. Apparently few bother to look as it takes time. If they bothered they would know corporate setup, what shares, options and warrants were issued and to whom and for how much. For example, no one has mentioned the several million PFN shares issued for 5 cents or the options at 10 cents good to 2002. Nothing secret and nothing wrong with it. They might also see that no salaries were drawn by management. Truth is the story is all open and above board and well-documented. Once known, you can then understand and anticipate other actions which are likely to take place.
I think you are right about Canadian exchanges needing to get their act in order. It's not the laws so much as enforcement which is weak. This past week Canada's largest bank admitted in essence to kiting the books of investment funds by manipulating closing prices. We are talking about people's pension money and billions of dollars. Their fine was a meagre $3 million set by negotiation. In America, I doubt the SEC, who will push for jail time, would have been so kind and generous. Corel Corp is another example where the charges are even more grim against management... who laugh and call them "a speedbump."
That being said, I'm aware of no hint of impropriety by Barr's companies. Their actions appear transparent, filings made on time, and there for all to see. The fact that most don't bother to look but harshly criticize them probably says more about the critics supposed street smarts than anything else. You know the guys I'm referring to...<ggg>.
Bob |
