I did not say that.
My comment refers to the broader assumption made by many posters about CUU and Ernesto, that connects his wealth and business success in another businesses with the likelihood of success in mining development and this company in particular. I don't think we can assume he is covered here with a deal of some kind. He is trapped more than anyone else in this company. He can only sell in a buyout situation, which appears unlikely in the near or even medium term. He is not a Frank Guistra or similar billionaire, with a track record of mining deals. He is a rich penny stock investor.
He is on the board, so we have to assume he is aware of what is going on and involved in decision making. He may not like it, and could vote against it, but he can't sell. Would he be at the negotiation table? I doubt it. He is busy and probably has fruitful things to do with his time. Don Lindsay probably does not negotiate with Elmer either, he has senior VPs for that.
Consider the board dynamics of late. Macdonald was #2 holder of shares and his experience would have carried considerable weight in discussions. He left the board- why? Conflict? Sinking ship? For certain, it was the only way to unload his holdings without tanking the sp. We don't know if he did sell, but I can't believe he did not.
As far as I am concerned, EE's only leverage now is the choice of further investment. And the same consolidation-dilution issue that retail investors face could result in him losing majority holder status, so he is almost forced to invest further. He also has the threat of selling his some or all of his shares on the market. It would tank the company even if he started to slowly sell, and as a result, his own investment, so obviously he would be cutting his own wrist.
For all the pain shareholders have suffered here, at least all of the retail can cut and run, most in a day or so of sells. EE is stuck with this ship, even if it sinks. |
