To all:
Hi, from a first-time contributor to this thread. I had originally
bought some CLPZF against my better judgement after following on
Investment Guru. These are the events and factors I observed
or experienced:
1) called Colossal's IR and asked for financial statements (a few months ago) and got a ridiculous reply: that they cannot disclose production costs, they were concerned about competition from Zaire etc. I told them they are a public co, what I was asking for is standard fare, presumably they have to report to SEC anyhow etc. Seemed the IR person didnt have the slightest idea what I was talking about.
They did send me a packet with some newsletter or small-time
analysts' views (namely hype)
2) In any event their production plans seemed firm and I liked
the idea of a play on cobalt, so bought some shares. Then
Vantage had its trading halted on the VSE. A little voice in
my head said "sell while you're ahead" but "alas", I didnt listen.
the de-listing of CLP didnt help my confidence any either.
3) Couldn't access any kind of filing thru internet at SEC
4) News releases came out about their wanting to hold back on sales
until prices firmed. I thought this was strange for a producer;
they after all are not simply speculators and traders. They have
fixed assets and have to generate a commensurate return. Also
they need to develop a steady reputation as long-term supplier
(someone commented here with same opinion earlier).
5) News about purchase of Barplats facility and commissioning of
facility in Zambia
6) Then news about the convertible debentures and lawsuit
7) News about Colossal picking up some other assets, land
and gem-related property
What all this tells me is that Colossal's stock performance is not
only a problem of the debenture debacle. Of course, what business does a
startup have to issue convertibles anyhow? It's a good vehicle
for large cap companies but for Colossal with relatively high stock
prices why didnt they simply issue common shares, or maybe debt if
it made business sense, or combination? A lawsuit also would simply
put them further into the muck and will just cause distraction
and legal costs. They would be suing someone for taking advantage of
their own stupidity. Fab, guys! Real groovy!
The problem is confidence overall. My feeling is that Dil Gujral
is a typical Indian entrepreneur: close attention to his
own pocket and the production and engineering side of the co on one hand but a lot of big talk (President of Zambia will show up etc) and erratic and emotional management behavior, no focus, on the other. I havent seen "world class management" yet. Is Mr. Gujral simply
abandoning VEC now that the VSE required management changes?
I dont know, but putting CLPZF into the gem business would suggest this.
If so doesnt say much for his loyalty to shareholders outside
of his own family, or for business focus. This question needs answering.
(I am not being ethnically superior. My own background is Indian
and I know lots of Indian company owners in the U.S. and Canada; the
above is a typical pattern though they are very smart people).
Having said that, presumably his people in Africa are qualified
and competant. His play may be shrewd in concept. The cobalt market
like other commodities should be bullish long-term. Hopefully
the company will be run as a real company with a proper plan to capture more value by producing higher purity product, show income, cash flow and assets etc.....
Let's see. But they had better shape up and stop going ahead two
steps and back one if they want their stock price to stabilize
at higher levels. If they dont, they will continue to be a toy
for market players. Mr. G should bring in a proper professional
manager to help run Colossal. Could be a good combination. |
