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MFC Bancorp Ltd. (MXBIF) Message Board

  • patbob56 patbob56 May 6, 2005 10:25 AM Flag

    pink sheets

    vanguard brokerage finally priced my shares, $1.50 per share the symbol is BUERF.PK which i assume means it is trading on the pink sheets.
    i have not seen any shares change hands on yahoo.

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    • Very interesting.. can you post more information about the fund manager from that article?

    • I did not see this linked by anyone. It appeared in the May 5th Money Digest.
      David Harris has seen cumulative returns since his fund�s inception in August 2001 of 20.34% annualized vs. a loss of .13% in the S&P 500. As a Franciscan focused on non-possession, his goal as an investor is to make and give away as much money as he can, making a positive difference like Warren Buffett. He notes, �Buffett, along with Benjamin Graham, have had a profound effect upon my life.� Buffett has three broad criteria: price, lasting value, and good management. My top pick now is MFC Bancorp (MXBIF NASDAQ), a merchant bank in Canada that operates primarily in Europe and East Asia. It is small, with equity of only $225 million, but very predatory. Like Berkshire, it buys significantly undervalued assets to unlock the underlying value. Unlike Berkshire, it can be purchased at 8 times earnings. It has had a significant increase in net assets, spun-off 20% of its assets to shareholders during the year, and made significant acquisitions. Its valuation is discounted to about 1/3 fair value

    • "The big question is who those buyers are"....
      Peter Kellogg

    • I agree that TRHM is probably not involved for a couple of reasons - what you said plus this would be treasury stock (?), trades of which don't show up in volume in the regular exchanges. Pink sheets I don't know.

      I still think the buyers are just knowledgeable individuals. If you have any information on the dividend, you would probably be a buyer. Given the public announcement of a Sept. dividend and the projections of income, etc., this could be a great buy. In fact, that's what the volume is telling me.

      Good thought on institutions selling, but Mining co's buying? I wouldn't think so. This is a pure play on cobalt price.

      Our problem is lack of certainty (and maybe trust of MFC), and personally, I would never make a penny stock Pink Sheet buy. I'm not even sure my brokerage account allows me to do so.

    • Just speculating, but sellers should be readily available. MXBIF shareholders who received this have been unable to sell since the spinoff. In any spinoff, some shareholders are going to want to dump the new holding. The surprise is that unlike MYMX, this spinoff did not have a complete price collapse as soon as it began trading. I think management learned from the prior experience and has lined up buyers of last resort to sop up the initial sales surge. The big question is who those buyers are. Of course, it could be an opportunistic buyer, but Blue Earth has extremely strong control measures including a board not even up for election for many years. A strategic buyer could not exercise any control through a large share stake. Either, would need to negotiate with management or, be satisfied with a passive investment.

    • Ah, a fellow TRMH shareholder. I concur with you. No stock yet. Taking into account the prfd stock, I believe MFC controls more than 90% of the MFC and BE TriMaine assets to be distributed. I suppose Smith could sell the TRMH BE belonging to MFC, but I doubt it given his history for valuations and the fact that stock has not been distributed to the rest of us. Moreover, TRMH's BE holding are dwarfed by this week's volume. Besides the large trades and volume in BE indicate that one or more of the institutions owning MFC sold large amounts in the first week, perhaps due to their charters. As an aside, my broker was not allowed to buy BE since it was not Blue Skyed. Moreover, since it happened so fast and in such large trades I suspect these trades were arranged by a broker who knew where the shares were owned and knew some prospective buyers. But it is a conundrum to me who the buyers are, and I would welcome ideas on this topic. Has anyone else been blown away with surprise about the volume? Nearly $4 million of stock has traded, some in very large trades. I think we can rule out mutual funds? If wealthy individuals have bought this stock, they have to have gotten information from Smith or they have mining engineers on staff. I have been ruling out a mining company, but I suppose that could be wrong given how so many small mining companies have been buying small properties of this type. Please comment.

    • As a TriMaine shareholder it is my understanding that the shares of MFC and Blue Earth were to be distributed to TriMaine shareholders, which has yet to happen in my account.

      So I doubt that the shares being traded are related to TriMaine.

    • Trimaine received its pro-rata share of Blue Earth stock as part of the going private windup. As Trimaine is liquidating, the Blue Earth shares owned by Trimaine would logically be the blocks of shares now being crossed into the market.

    • The problem is - not too many insiders own the MFC stock (is that normal btw?) to have received the BE stock on a spin off. We do know, however, that there are some really-really big (and I mean reeeeally big) shareholders that own a ton of MFC and want to own even more of BE because at these prices it's a steal. I think this person is the one that does most of the buying.

    • I've given thought to it, but have no information. Since the volume is so spectacular and the stock so obscure, it has to be insiders or very knowledgeable people buying. The dividend is certainly attractive if you're relatively sure it will be forthcoming. The sellers? Probably people like us that don't have a clue about cobalt refineries or why we should own them.

      Ah, it's part of the fun of owning MFC

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