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Alex - Sorry you're bailing. About Frank M: Did you ever consider that perhaps Frank knows he screwed up, and has to be more diligent in running SWC than in the past to redeem himself? He might be too proud to admit his Peregrine folly, but I think it's very unlikely he would pull some boner move like that again. "His" board would veto such a move, for sure, as they must also recognize they would be voted out otherwise. I'm sure Frank M lost plenty too in his stock options getting slammed, as did those of the board. IMHO - Won't happen again. I'm more worried about general mine problems that can occur.
Thanks MrJo, and for the sake of all SWC shareholders, I hope you are right. My thinking actually was that Frank knew he had underperformed for his first 10 years as SWC CEO/Chairman, and I think that's part of the reason he bought Peregrine last year. Look at it this way - SWC shares closed at $36.00/share on the day Frank was named CEO/Chairman (February 12, 2001); 10 years later the shares had LOST 33% of their value (with no dividend paid) during one of the greatest bull markets for the metals/mining sector in history. Frank saw that he was 68 years old and a loser as an executive, so he decided to make a "hail Mary pass" for final glory.
IMO this was similar to what Jon Corzine did at MF Global, in that Corzine had been unsuccessful as the Goldman Sachs CEO, and unsuccessful as New Jersey's governor. When Corzine had a chance at MF Global, he may have seen it as his "last chance" to make himself look like a winner, and he took a very high risk gamble on European debt. Corzine lost that gamble and was forced out in disgrace.
Similar to Corzine, Frank McAllister took an absurd "Hail Mary pass/Last chance of his career" gamble on Peregrine, got completely snookered by Peregrine management, and SHOULD have been fired by SWC's directors. In fact - similar to Mitt Romney's observation regarding Newt Gingrich's idea for a moon colony - when Frank merely proposed the Peregrine buyout, SWC's board should have told him "You're fired". Additionally, Frank's bizarre desire to make a big splash in South American copper, may have caused him to take his eye off the ball in Montana, where there was the death of a worker and apparently other mine safety incidents.
So now where is SWC? Does Frank know he screwed up with his Peregrine folly? I have serious doubts about that. And even if he does knew he screwed up, it's pretty clear that he intends to "make it work", rather than taking the route that PAL did last month, in admitting their Sleeping Giant error. "Frank's board of directors" may have a better sense that they screwed up, but they obviously don't want to admit this either, and they too may decide to "make Peregrine work", in an attempt to save face.
As far as the SWC shares owned by Frank and the directors, I've never seen ANY share purchases on the open market (i.e. other than warrant conversions) by ANY of them. Not even 3 years ago when SWC was down to $2/share, at least as far as I know (if there were actual purchases, someone else may correct me). It seems to me that the committment of Frank and the directors is merely to themselves, their pay and perks, and their glory - at shareholder's expense. I got tired of being a chump for these clowns.
The Montana assets are IMO the greatest PGM (platinum and palladium) deposits in North America, the best outside of Southern Africa and Russia. It's outrageous that these scoundrels have been milking the shareholders, rather than focusing on those incredibly valuable assets and being willing to sell them out at a high price. Instead they act like they are supposed to build some sort of global mining empire, cost and shareholder interests be damned.
So if an when Frank and his board realize they screwed up, what will they do? Will they throw ANOTHER hail Mary pass, in an attempt to redeem themselves? Hopefully not, but I didn't want to be around for that. Again, I had planned to wait for a buyout this year, and perhaps I made a mistake in selling out on today's price rebound. I'll be happy for the shareholders if that turns out to be the case.
Yes alex, we have seen this before: CEO's with successful track records just taking a flier and ...PLUNGING!!!
Look at the most successful real estate investor in history, Sam Zell, and the MULTI-billion dollar fiasco that he created at the Tribune, Lester Lambert with Sears, and on and on.
That's why agressive, compentent and INDEPENDENT BOARDS ARE NEEDED to keep an individual CEO from making really bad decisions based on hubris and ego!
If SWC had one, I can't believe they would ever have gotten into such a cockamany venture.
Good Luck Alex. I understand your bitterness all too well. I had call options in YHOO that were doing great, especially after Einhorn announced he had been buying, until Yang, Bartz, and the BOD dropped the ball, and let Jack Ma take Alipay away on his own terms. My options became worthless in less than a week. I moved on after a lot of groaning, perhaps you needed to do the same here in SWC, but I'd hate for you to miss getting back more of your money. But of course, you could be right, and they announce they are going to fund Peregrine, and the stock plummets - sure hope they don't blow it again. Again - Best to you - MrJ
"the Montanna assets",
What about the not yet mined Minnesota nickle, copper, palladium
assets of PLM who have been waiting for permits about 8 years now
I am not very good at reading drilling results.
won't they be a major player in a couple years?
Glencore thinks so.