re: my take, page-5

re: my take WallyGreenblatt, good post. The board is about to go through some changes anyway. I can’t remember the details, but I think 2 are going to NuPower, and I believe there are plans to take on 2 new directors for ARU – (one with industrial chemistry skills - is that right?). And yes, I have no problem with replacing board members as their skill sets no longer suit the company’s needs, but that is not what Norm is trying to do here. His stated aim was to send the board a message and I get the impression that his message is “Norm may not be on the board, but he still has enough power to make the board suffer unless they do what he wants” It’s a power game and I think it’s not helping anyone.

In fact it is clear now that it’s starting to do some damage. One of our champions (Kalmsg) is just about ready to spit the dummy and wouldn’t that be a sad loss for all of us – he has spent many many hours researching ARU and sharing his information and enthusiasm with the rest of us (it was Kalmsg’s fantastic analysis of our resources that convinced me to jump in boots and all) and his posts are always positive and informative and witty. And Norm just contributes loud complaint. It’s really starting to take the fun out of it.

Consider this: there are only two ways our share price can go up
1) If new shareholders buy shares from current shareholders at higher prices.
2) If current shareholders buy from other current shareholders at higher prices.

It is not management that makes the share price go up, it is the public perception that this company is worth getting into at higher than current prices. I reckon that the continuous loud and baseless complaints about management are making this less likely.

1) Any new shareholder who reads Norm (and others) negative posts are going to be influenced and will factor that into how much they are prepared to pay.
2) And now the existing holders are starting to get rattled. Who knows better than Kalmsg what a fantastic investment ARU is? And if he’s thinking of pulling the plug (hang in there Kalmsy), then who exactly will be buying at higher prices?

In my view, management are doing all the right things and we’re progressing towards having a multi billion dollar rare earths mine and what looks like a fantastic uranium company thrown in for free (and the gold, and the vanadium and the iron…..). The share price will go up, but as many have stated repeatedly, patience is the key.

We just have to try to ignore the baseless negativity and get on with it. Sheesh, without Norms complaints I believe we’d all be finding it hard to contain our excitement. ARU is poised for the biggest move of it’s life (the demerger) and the pilot plant has just received a big shot in the arm. It is going to be so good. The new U company (which will remain in our hands 100%) is likely to be an instant double bagger or better. ARU just received a massive government handout which in my view amounts to a green light from government to take Nolans all the way to a mine. I find it hard to imagine how things could be better. True, if the share price was currently over a dollar, I’d be smiling more widely than I already am, but I still wouldn’t be selling, cos in 2 years time $1 is going to look way too cheap. We should be enjoying this time.

Norm, step back a bit and notice that you’re about to get megga rich – and maybe try looking into the mirror and smiling (the outside edges of the lips go up). The government grant added about 3.3 cents per share to our company’s value, and I calculate that’s worth about $200,000 to you personally, and we didn’t hear one word of praise from you. If you reckon you could do the job better than the board (and you’re currently demonstrating that this is not true) then please just keep quiet about it. The last thing they need at this time is all this infantile squabbling. Let the board get on with the job and just accept that some things take time and that they’re just not going to do things the way you would.

I’m in one of the top 20 lists and am currently considering doubling my holdings – because I think that after the demerger, the combined value of ARU and Nupower is going to be a lot bigger than ARU’s current value. (didn’t really want to tell the world that cos if everyone knows there’s a buyer out there who’s willing to pay, then it won’t help me to get them at a low price, but Kalmsg needs a bit of support I reckon. And if Kalmsg bails, then I reckon I might have to as well) As I said in yesterday’s post, it is in my interest for the price to go down in the short term because I still want to accumulate, but if people are starting to take Norm’s baseless complaints about management seriously, then it’s time to stop the rot.

It’s good to see a few posters come out of the woodwork on the positive side. Anyone with a clear view can see that ARU management is progressing our company sensibly and at a reasonable pace. They don’t control the share price directly, but they’ve made the right moves to set us up for a fantastic run over the next couple of years. ARU is still a share to buy and put in the bottom drawer. In years to come there will be plenty of those moments when you look back and say “Oh why didn’t I buy more back when they were only 50c”

Cheers everyone, and try to enjoy the ride…