I have read many of your posts and respect your investment accumen.
This is the first time that I have responded to a thread on any
stock. I have read the due diligence package on Genesis and hope
you can clarify some questions that seem significant.
1. Under Assets the company list Investments of:
Yen Bonds $80,000,000
Matsui Bonds 29,500,000
Gold Dore' Bonds 8,500,000
With $118,000,000 in Bonds as Assets you would think that
there would be some kind of bond income. Do they own these
bonds? If Genesis doesn't get the interests due then who
does? If you only have limited "ownership" of a bond how
should it be "fairly" valued on the GIFS Balance Sheet?
How would NASDAQ value these Bonds? GIFS management in
the notes of the Financial Statement state that most of
the "assets" are really rights of use...do they ever have
the right to sell?
For example, they list Corundum as an investment worth
$2,304,000. GIFS paid $100,000 for the perpetual use of
the asset. Then would it not be more accurate to state
the value of the asset as $100,000 vs $2,304,000. If I
rent a house can I use the value of the house as an
asset on my balance sheet?
Finally, as a capper the lease rights for an $18,000,000
gold mine as an asset?
Is this a "real" company with real assets? They call
themselves an insurance company but they are in the
"non-insurance Surety business". They say,
management, management, management is the first and
foremost concern for small-cap investors. How do you
feel about a management team the has a stated policy
as: "Corporate policy has been to invest all surplus
funds in gold coins...."
I don't own this stock, however, I would like to see
more facts posted on investment threads... I respec
you feedback and hope to hear from you.
jimk |
