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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Ed Ajootian who wrote (125007)	10/18/2009 5:37:50 PM
From: Amark$p	1 Recommendation Read Replies (2) \| Respond to of 206160

As noted, Bob Lamond has publicly stated that SHY will hold MHR as a long term investment. That said, my recollection is Lamond is 86 years old and he owns 26.2% of the SHY shares outstanding. While I do not think SHY will be dumping their shares anytime soon (and the shares are restricted for the next 6 months), it is evident that Lamond's heirs will desire liquidity and Lamond would ensure that MHR shares could be sold, IMO. SHY insiders, including Lamond, own 43% of shares issued and outstanding. Please refer to SHY Sedar Filing dated Sep 15 2009 "Material document - English" which is the Agreement and Plan of Merger between SHY and MHR. see page 37 1) SHY must give MHR 5 days written notice prior to selling more than 25% of its MHR shares 2) SHY can enter into a underwriting agreement and has certain Lock Up Rights. Nonetheless, you are perfectly correct, an investment in SHY as proxy for MHR is long term and not liquid. That's why SHY is selling at over 30% discount to NAV... However, I would argue that over 30% NAV discount seems a bit too much which is what I contended with prior post: box.net Message 26025614