My concern, (if it be that) is not whether the report is positive, but what it says.
If you read the dwa website, it seems that they have 2 main functions; 1 to lend credibility in the capital markets and 2) raising of funds in the capital markets, presumably via private placement. [It looks like they also advise on merger and acquisitions, we should only be so lucky]
Ok, all of this makes sense for CMR to do, and my guess is that DWA does the due diligence, publishes a research report and helps CMR via private placement raise the funds necessary to secure bank financing.
My guess would also be that DWA has already scoped things out and decided the story is good [how many consultants write reports tellling mgt that mgt's ideas suck?]. If they wrote a positive report and had little to back it up; then the market wouldn't buy the private placements next time around. So my guess is they only take on clients where they think there is value.
So my question goes back not to will the report be positive, but will the shareholders be allowed to see the entire report? Or does the report only get circulated to 'sophisticated investors' able to invest 100k.
As this report presumably will be the first [second if you count Agra, and we are still waiting to see that] report of someone from outside the company who has actually been able to visit Maskwa, Werner and The Refinery, it should make for interesting reading. |
