08/11 Update: Quite a number of substantial changes. The company has now brought on a new person (his name is Richard) as Executive VP. At this point, he has been with the company for about a week and half, and will likely supercede Robert Bateman as President in the near future. (I was surprised to learn that Mr. Bateman is nearly 80 years old, so I'm sure he wouldn't mind lightening his share of duties.) I learned that Bateman took on his current role only as an interim position to "clean up" the mess left behind by previous operators. (Actually, if anybody could provide a brief history on the company, we could all benefit and become more enlightened.) He would probably stay on as a director and consultant for the company if there are upcoming changes in management.
Richard was very informative and upbeat about the company, and he was very willing to give a clear and complete overview of the company's current activities. From my conversation with him, he has acknowledged current investors' frustration and uncertainty with the company, and he is addressing the concerns. Already fixed is the previously blunt and unfriendly voicemail message... it now identifies the company as Dakota and is more friendly. Richard is also looking into why the company wasn't listed in the local directories, and how this can be changed.
So... a number of things are happening at the company now. We'll probably be able to know about the long-awaited gravel deal soon. For the past few weeks, Dakota had been dealing with a third party, which is now out of the picture. By directly dealing with the gravel pit owners, the deal is apparently looking very promising and do-able. As I understand it from what Richard said, the pit is in receivership with the bank, and there is a drop-dead date set for Aug 12 (although I'm not quite sure what this means). The gravel pit is worth $48M, and will provide 1M tons/yr at $4.50/ton if it is signed. Uncertain whether Dakota would operate the excavation/processing themselves or work with another company...
The other possible play is petro-related. I believe what I heard was that if the acquisition is completed, it could bring in $8M/yr, and boost the share value by 6c/share.
Another deal which Richard could not comment extensively on was "as good as done", pending only a signature on the other end. Once it is signed, the company will be obligated by the exchange to put out a release within 48 hours. Looks like it's visible on the horizon.
I am told we may expect a news release and corporate update as early as next week. I also sense an effort by the company to keep shareholders a lot more informed in the future, which is a welcomed change.
Although many points are a bit fuzzy in my mind, I'm also relieved that some of my earlier skepticism can finally be pushed aside. It seems like a whole new company altogether. I definitely wouldn't go on a buying frenzy, but at least I can hold and not worry about the company folding. Richard is down-to-earth and to-the-point, and admits he'd rather not not suggest anything that is pure speculation and unsubstantiated. He would rather see the price go up on facts rather than anticipation. (I certainly can't argue with that!)
If you own shares, I think it's really worth your while to call the company (403) 221-7715 and hear the latest info for yourself (I must disclaim the accuracy of the information I've conveyed... taking notes on the phone and later trying to interpret what I've written is a challenge in itself!). And, of course, post anything you learn, including additions, corrections or confirmations of what we now know.
I definitely hope we see a release next week, and if it comes out on time, the company's credibility will hold a lot more water (or gravel?) in my books than it has in the past few weeks. I don't want to discredit Mr. Bateman, but what can we think when things are constantly delayed or plans are abandoned? Let's hope we're seeing the turning of a new leaf...
Ben...
PS. Nice to see the bid-ask gap tighten up a bit at 0.17-0.18. |
