Member Info for CJohnSpain

Hi Tully,

if that ask price is viable in any quantity, then it's a huge bargain price…….

I'd be more inclined to take t the24 cent valuation as a benchmark, given that a large number of shares have been issued at that implied valuation.

hi Tully, I have 28 cents Canadian as today's DLC mid-price.

The proposed transaction gives a realistic sense of the value of DLC shares.

Thanks for the heads up, Tully.

A ver long grace period gives large room for manoeuvre.

Hi Steve,

The buy backs make sense anyway.

However, they will only happen, (post-regulatory approval) if there is cash available.

At the moment there isn't. Instead, the company - through DLC - has purchased more assets. (Makes the buy backs less likely to happen, in my view.)

Having Gyllenhammer invested is a very big plus.

HI Steve,

Gyllenhammer's involvement isn't specifically to do with the ski resort purchase.

Gyllenhammer likes buying into struggling companies stuffed with assets. He then sometimes takes an active role in unlocking the value. Someitimes he's more of a passive investor.

(I've been involved with perhaps as many as ten shares where Gyllenhammer has become involved - no coincidence: I like asset plays too.)

The acquisition does give us an implied value for DLC shares. Well north of the current M Cap for the whole of CRV.

My experience with very illiquid stocks is that headline spread shouldn't be taken very seriously.

I usually put an order in the market at prices well within such fictional spreads. More often than not the order is filled.

...who got mesmerised by the beauty of his own reflection in a lake and fell in and drowned.

This is a vice that I'd like to have, to be sure. You know the beauty that goes with it.

I hope some sort of succession planning has ben done at CRV, given that Mark is the lynch pin.

Regarding the buy backs, these can only happen when there's been an asset sale or a loan is paid back to the company.

So any current buys are not the buy backs.

Yes, I agree wholeheartedly with you, Steve.

Will the obvious asset value value be realised for shareholders in a time scale that produces a decent annual return?

They should crack on with the share buy backs the moment they do sell some assets. Until there is an asset sale or the balance of the Angolan or S African loans are paid back, nothing's going to happen, I'm afraid.

DLC is valued at just over $16m (prior to the Blacktail acqusition) based on the value of DLC shares in that acquisition.

CRV holds 68% of DLC. That 68% is worth $10.88m, just over 9 million sterling.

At today's share price of 241.8, CRV is worth just north of 6 million sterling…...

Hi Tully,

the lack of market activity in general demonstrates the need for a significant catalyst.

The share buy backs could be one…..

Blacktail will cost $3.5m. That is $4.68m Canadian at today's exchange rate.

DLC will pay with 18,452, 000 shares. That values each DLC share at 25.36 Canadian cents.

That values DLC at $21.47m Canadian or just over $16m US.

This transaction gives us a real value for DLC shares, otherwise difficult to value accurately given the lack of liquidity reflected in the comical spread commented on by Tully.

This looks like a decent deal to me.

Having looked in more detail at LMFA's results, it seems the underlying business is currently close to breakeven. There have been a series of one-off costs to do with potential acquisitions and the IIU acquisition and unlikely to repeat legal costs.

So, if CRV can gain control, this might be a small coup.

But obviusly there's no point converting debt into LMFA shares at prices well above the market.

I'd prefer them to re-finance and pay back our cash, plus interest.

Hi Tully and others,

The update was welcome, but didn't tell us anything we didn't already know, as nothing particularly noteworthy has happened since the last results.

I would buy more at the current prices, but I already have a lot.

More patience is required......

A lot of the extra value has come from an appreciation in DLC shares.

These rocket up and down on scant volume. (Encouragingly, there are buyers at the current price of $0.28 (Canadian)).

The last set of results were more informative too.

So I think it's a new approach.

You're right, Tully, in your analysis. it's a severely undervalued share.

My twenty year expereince of buying undervalued asset shares is that it can take many years for value that is blindingly obvious to be crystallised for shareholders.

In the case of CRV, the disparate - geographically - nature of the assets puts off many investors. Then there are the issues of transparency which have been well-rehearsed on here.

Hi Tully, you say
"My thinking is that several high worth individuals have invested large at much higher prices in Craven and have shown no sign of reducing or selling out. That puzzles me.."

But you give the answer in the previous paragraph, "I just have a great deal of difficulty seeing past our assets which I am sure we agree come to multitudes of our current SP."

Peter Gyllanhammar, for one, is an investor in undervalued shares with strong asset backing .

Thanks, Karina