RJM2

Consolidated Mercantile: Cheap in Terms of Cash

The biggest issue with this stock is its canadian and Its controlled a small group of people whose interests may not be aligned with shareholders. A company Im familar with, its founder sold controlling interest to someone else for $4ish per share. The founder got it all in cash. Nobody else had an opportunity to sell to the new buyer.

Now, that stocks near $1. The founder made out and the new buyers got control without paying for all the shares.

Finally, theres the cost of being public and the wages & salaries of the insiders while its just a shell. Over time, they can add up.

And CSLMF has not communicated very well their intentions.

How about you send me $100k, that I promise to sit in a bank account untill such time as I decide to invest it.

I wont give you any details about what Im considering investing it in and I will take a salary, but I wont tell you how much.

To make it more of a comparision, lets say I live in Boca Raton, which has almost as many scams as canada !

Whats the intrinstic value of an investment you have ZERO control over, whose controllers may have different motivations ?

Hypothically, someone could come in and buy controlling interest in CSLMF by paying these guys out at say $3 per share.

The rest of us would still own our shares. But the stock may be sitting about where it is right now.

Dont get me wrong, CSLMF has speculative appeal, but there is a valid reason that it trades at a large discount to its net asset value.

Given how long its traded at a large discount to its NAV, one can presume the insiders arent particulary worried about where it trades. One may be able to presume they would be willing to accept a sweetheart deal for their shares thats not so sweet for the outside shareholders.