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  • Odyssey Marine: SS Central America Legal Win Expected [View article]
    Thx Gaspains, I'm not a lawyer so take this with a large grain of salt. CADG may appeal the case. If so, they'd have to post a sizable bond from what I understand. But I would assume they'd do that if there's real money behind them.

    There are a lot of things that could happen to prevent this from dragging on. The fugitive disentitlement strategy looks like it was designed with this case in mind. If the judge agrees, then I'm not sure there's a lot CADG could do. Maybe they would appeal that order, but given the circumstances, it's likely that a judge would grant RLP a stay and allow them to proceed with monetization.

    If RLP wins substitution or the new admiralty arrest stands and CADG appeals, there's also a good chance that the case is expedited at the circuit level given the circumstances. Everyone (including Judge Smith) knows CADG's game. They are making ridiculous filings (check out the wording in some of them), they were taken over illegally, and they are abusing the judicial system. They allegedly robbed RLP investors once before, and now it looks like they're trying to do it again. They probably want to hold up RLP until RLP gives them a little something. I don't think CADG is delusional enough to think they can win this.

    If you and I can figure this out, the judge knows it too. She'll do whatever she can to make it hard for them to drag this out. The absurdity that a fugitive's firm could hold up the investors who once backed him, and who he allegedly defrauded once already, is amazing.

    At the end of the day, CADG probably wants a cut. Maybe RLP will toss them a bone to get them to go away. Again, all conjecture.
    Jun 5, 2014. 01:46 PM | 1 Like Like |Link to Comment
  • Odyssey Marine: Meeting Reveals Larger-Than-Expected SS CA Recovery [View article]
    I apologize, Blue Ridge. You're right. I put some parts of this together pretty quickly. Those links are in my instablog on the subject. If you have trouble finding them, just contact me directly and I can help. The only one that doesn't have a link is Herendorf - that was based on a private conversation.

    Herendorf has a copy of the letter from the Army's Center for Military History which addresses the army-protected gold. He believes that gold is on the site. Personally, I'm unsure about it. I became a bit more inclined to believe it, however, when someone recently pointed me in the direction of a book written by a US Naval Historian, John Kemble, in 1943 titled "The Panama Route 1848-1869." In that book, Kemble asserts that the SS CA carried $8mn in gold (vs. the $1.2mn acknowledged commercial shipment), leading some to believe he was referencing the Army-protected shipment.

    That book reference is important to me for a number of reasons. 1) It tells us that the idea of a much larger shipment was around well before the 1971 CMH letter was written. To me, this makes it less likely the CMH letter is a fraud as we now know there was historical context around the inquiry. 2) It was written at a time before anyone dreamed it was even possible to salvage a deep water wreck. 3) It was written by someone who was, at the time, in the Navy and may have had access to sensitive/classified documents. 4) It was written by a highly accomplished Naval history scholar - someone who served on the Secretary of the Navy's Advisory Committee on Naval History.

    If you buy a copy of the book, you'll find the reference on page 142.
    Jun 5, 2014. 12:14 PM | 1 Like Like |Link to Comment
  • Odyssey Marine: Meeting Reveals Larger-Than-Expected SS CA Recovery [View article]
    Thx, Rbob. I think Morris actually lost credibility with the market long ago. You can see it based on the way the stock reacted to each of his articles after the first (with the exception of the last one which just happened to be timed right). I don't attribute the recent declines to him or to any other short for that matter. Management got too close to the edge and the stock cratered due to the rebalancing.

    The market knows that Morris's "facts" don't add up and that he has little regard for the truth. In my opinion, Morris is a PR agent for a large fund or two that are probably doing some of their own work and then feeding him.

    Just look at some of the "research" he has put out. How can you take anyone seriously who tells you that historical documents "confirm no army gold"? When the SS CA set out from Aspinwall did the Army hand out leaflets stating there's no army gold on board her? The whole point of a secret cargo is that it's not printed in a public record.

    Of course Morris also told us that if there was anything left at all on the SS CA, it was just "scraps." That was insightful.

    Morris told us that OMEX's auditor had been investigated when they hadn't. He told us that the CEO stated the company would run out of cash this year but this never happened. He told us Oceanica is worth zero which is utterly false according to the qualified person doing the technical assessment. He told us John Morris is still a consultant with the company which was fabricated. He also told us that Odyssey lied about its fees on the Gairsoppa recovery. I could go on for much longer but we all understand the pattern.

    The market is paying attention to OMEX and the balance sheet. I don't think the market pays much attention to Morris. Why would it?
    Jun 4, 2014. 03:41 PM | 6 Likes Like |Link to Comment
  • Odyssey Marine: Meeting Reveals Larger-Than-Expected SS CA Recovery [View article]
    Tincup, I think you should write an article about the strategic and practical benefits that Oceanica will provide to Mexico. I'm serious about that. You are much better informed than I am, and you've got a lot of material in your head.

    Regarding JPM bankers - you're telling us that they aren't clerks at the local Tampa JPM commercial branch office? That's what Ryan Morris's "due diligence" uncovered, if you remember.
    Jun 4, 2014. 02:26 PM | 3 Likes Like |Link to Comment
  • Odyssey Marine: Meeting Reveals Larger-Than-Expected SS CA Recovery [View article]
    Thank you, Papa, Ship, and Eugene. Appreciate the feedback.

    The next few weeks are going to be interesting for all of us shareholders. We should get updates about salvage progress, bank line draws, court rulings, environmental filings, potential Oceanica/mktg rights financings, and possibly an HMS Victory go-ahead. Never a dull moment with omex.
    Jun 4, 2014. 01:59 PM | 4 Likes Like |Link to Comment
  • Odyssey Marine: SS Central America Legal Win Expected [View article]
    Gas, I do think that the legal issues may hamper what omex management is able to say.

    These legal issues should be decided fairly quickly. Judge Smith is known to have a "rocket docket" -- one of the recent filings even cites this fact. Also, it makes sense to have these issues ironed out early in the recovery process, before RLP needs to begin monetizing some assets to take care of the various interests it represents. Reading through the judge's orders you get the sense that she doesn't have a lot of tolerance for CADG's position.

    I don't think OMEX's finances would be jeopardized even if Judge Smith decided to take a 6 month vacation beginning tomorrow. They will expand the amount of the line and the collateral under the line, and through that conduit will be able to draw $5mn for every $25mn-27mn or so in gross wholesale salvage value. They'll also do a debt piece to monetize marketing rights for future salvages or an Oceanica deal. I am not concerned about liquidity at all.
    Jun 3, 2014. 08:25 PM | Likes Like |Link to Comment
  • Odyssey Marine: SS Central America Legal Win Expected [View article]
    Teklord, if you google the fugitive disentitlement doctrine you'll see that it fits this case almost perfectly. Why should TT's firm be able to command the resources of the court and of RLP when he is a fugitive of the court and the federal justice system? Doesn't make a lot of sense.

    RLP can win this battle on the merits of its case - there's little doubt about that. But as you see from CADG's memorandum in opposition to RLP's Motion for Extension of Time, RLP's lawyers think that CADG's objective is purely to delay resolution. If that's the case, then the fugitive disentitlement strategy makes sense.....just get the nut cases tossed out of the court house.
    May 30, 2014. 10:17 AM | Likes Like |Link to Comment
  • Odyssey Marine: SS Central America Legal Win Expected [View article]
    I think that CADG doesn't want RLP (or OMEX for that matter) to be able to demonstrate any success in salvaging the SS CA.

    Unsure about when the court will take action.

    The gag on news from this operation is creating a big discrepancy in the share price of OMEX vs. the underlying fundamentals. Hopefully that gag comes off soon and the stock will price in the good news.
    May 29, 2014. 11:51 AM | 1 Like Like |Link to Comment
  • Odyssey Marine: SS Central America Legal Win Expected [View article]
    NJTGK, No. The recent motions are just CADG's lawyer making the expected arguments. The judge has made it known that she intends to deal with this quickly. As noted earlier, RLP wins regardless, so none of this matters. CADG knows this too, so it seems that they are likely going through this process not in an effort to win, but to try to add uncertainty to OMEX's business.

    If the shorts are behind this, it could raise some legal questions. I'm wondering if the judge can compel CADG's lawyers to specify who is paying them. Will be interesting to follow.
    May 16, 2014. 06:45 PM | 1 Like Like |Link to Comment
  • Odyssey Marine: SS Central America Legal Win Expected [View article]
    Robol's M.O. seems to be to try and delay and stall at every opportunity. I'm wondering if that isn't his intent here too. He knows he doesn't have a chance of winning, but he can try and delay and complicate OMEX's recovery. The strategy would make a lot of sense, especially if the shorts were behind it. However, it looks like the judge is onto the whole scheme and won't tolerate it.

    A couple people asked me today if the Explorer came into port a day or two early because of the legal proceedings. I don't think that would make much sense at all. The judge just gave omex the free and clear to operate a few days ago. Since then, the only docs filed were omex's letter to the US Marshal on handling the material brought up, and a memo from RLP's attorney's supporting the motion to substitute.
    May 14, 2014. 08:49 PM | 1 Like Like |Link to Comment
  • Odyssey Marine: SS Central America Legal Win Expected [View article]
    LOL. Love the commentary, Tincup. Just want to make sure I make the invite list to your first shindig on the Cote d'Azur.
    May 14, 2014. 01:41 PM | Likes Like |Link to Comment
  • Odyssey Marine: SS Central America Legal Win Expected [View article]
    Hey idrink, it's a mystery to us all. The official word from SA is that it's due to Yahoo's secret algorithm. I know, it sounds like a cop-out to me too. People have also raised the issue that SA is quick to erase messages that criticize shorts, but not so quick to do the same for longs. I take the viewpoint that the market's pretty efficient, and will work around SA/Yahoo playing favorites. But I agree, it is kinda frustrating.
    May 14, 2014. 07:55 AM | Likes Like |Link to Comment
  • Odyssey Marine: SS Central America Legal Win Expected [View article]
    Thanks, mykie.

    Meson is persistent, but I think that their diligence is lacking. Just look at all of the examples in his numerous articles where he has been flat out wrong.

    Some people will see this downturn as a minor victory for him, and I can understand that perspective. However, I think that anyone with an excel spreadsheet knew the company would get low on cash by midyear absent some deals. Odyssey isn't nearly as low as Meson implied, but that's not a surprise to the market either. So, I'm a little surprised at the market's reaction. Management will get a couple other deals done and will bring up quite a bit of gold from the SS CA, and both of these will happen fairly soon, so we can expect a rebound before long.

    Thx again for the comment.
    May 14, 2014. 07:48 AM | 1 Like Like |Link to Comment
  • Odyssey Marine: SS Central America Legal Win Expected [View article]
    Thanks, Tincup. Gold on the deck and on the balance sheet will allow investors to focus on some of the longer-term opportunities in front of Odyssey. Sounds like SS CA is progressing well, so we should get answers soon.
    May 13, 2014. 09:41 AM | Likes Like |Link to Comment
  • Odyssey Marine: SS Central America Legal Win Expected [View article]
    Appreciate it, Cliff. Luckily I had a smart lawyer helping me with some of these issues. Thanks for the comment.
    May 12, 2014. 01:23 PM | 1 Like Like |Link to Comment
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