Thanks for your contributions to this discussion group, Jeffry.
A few points that have come up recently:
Levine indicated that the entire 52 million tons of coal were included in the deal with the South African company. He was pretty explicit in pointing out that this was different than the $93 million cash offer which only included the surface coal.
He mentioned that South Africa is pretty "coal savvy" because of their heavy reliance on it. When asked whether this company would export the coal to South Africa, he suggested that this was not his understanding. Instead, it appeared that the company was simply looking for ways to diversify and move assets out of South Africa.
You prompted me to spend some time reading the 10K and investigating OTS Holdings. The deal for the artwork, Tennessee land, and Alabama property involved 8,660,000 shares of "common restricted voting stock" and 8,663,041 shares of "preferred voting stock". I had a few ideas about what might prompt Levine to transfer these assets to CEC Industries, but Jim's comments about the transaction are plausible.
If you or anyone else knows the terms of this preferred stock, please pass along that info. Are they simply voting rights, or is there some equity or guaranteed payout involved?
I must confess that I'm glad the Silent Radio deal did not go through. In the process of checking out various CEC Industries documents, I think I discovered how Levine got the idea in the first place. It seems OTS Holdings owned or was the Las Vegas distributor of Silent Radio.
P.S. This stock has succeeded in dissuading me from my belief in the efficient market theory. |
