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Weekend reading

Don Braid on ‘Clear Vision’: Great talk on what makes great companies what they are

Horizon Asset Management’s Quarterly Commentary: A great read. Think of it as a primer in valuation

Notes from the recent Value Investing Congress: Detailed notes from the recent VIC.

Interview w/ Timothy Geithner and Wang Qishan: Great interview between the two economic powers. No wonder why Lee Kwan Yee like Wang Qishan

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Categories: Reading
  1. bob
    May 19, 2011 at 3:49 pm

    hopefully we see news of the deal next week. at least the insiders aren’t selling their actual shares so far.

    • paras
      May 19, 2011 at 4:17 pm

      It is a bit frustrating waiting while the mgmt is silent. From what I heard, people that talked to management were expecting the company to get the financing deal done quick. The longer it drags on the management loses credibility. For now I’m patiently waiting.

      Paras

  2. bob
    May 20, 2011 at 11:58 am

    how much do you think the company (pure guess of course) would sell for if they can’t get the financing? barring gold price spike, any possible way for them to be profitable without the financing you think?

    • paras
      May 20, 2011 at 6:48 pm

      Tough to put a good price on it. Mgmt has said the company is on a 150K steady state of production but we have not seen any results that indicate that reality. Without the all-year round production the cost of production will be abusrd. In the most recent presentation the cost is placed around $1k per oz. So w/out all year round production, this company can’t stay profitable. It is unlikely the company stays independent if it can’t get the weatherization done, which means getting financing done. if they can’t get the financing done, then I think you are forced to sell. If that happens, no buyer will give you fair value for your assets. I think you get much for the assets if the financing is not done.

  3. bob
    May 21, 2011 at 11:51 am

    yeah, true. my guess is that if the insiders & sprott haven’t sold out and the financing falls through, they’ll maybe hold out for a gold price increase if newmont wants them to sell for pennies on the dollar. in the event they shut down the mine, do you know what the ongoing maintenance/environmental costs are? wondering if they have the ability to hold out and negotiate a little if the financing doesn’t go through? also, someone posted that allied nevada – seth klarman’s pick might be impacting the negotiations. did you hear anything about that by chance?

    • paras
      May 21, 2011 at 3:18 pm

      I think with the Sprott backing the chances are good of getting the financing done. I’m not sure what is causing the delay. I am not aware of the Allied Nevada story. What is the story there? How could it impact YNG financing?

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