80% increase in target size, page-9

What a ridiculous thing to say! - that something has no value until you start getting it out of the ground. Then WHY on earth do you hold the stock? Why would you hold most resource stocks?

Most resource stocks are not producers - so why does anyone own them? Because they have a value. Measuring the exact monetary value is always difficult, due to various uncertainties about the future - future size of the resource, future IO prices, future capital, future sovereign risks etc. etc.. But resources and resource companies have a value before they are sold. (They are traded on the market, for real money!) OUR job is to work out, independently of the market price, what that value is for ourselves.

The fact that EQX has just bought into AKI validates a minimum value (at least for now). It may well have a higher value in the future as further resources are independently certified and as commercial certainty increases, (which is, of course, what AKI shareholders are expecting, and hence why they own the stock). Or, AKI could have a lower value (if AKI holders are wrong.)

Flyingdoc, I have a read a lot of your posts on CFE over the stretch - in fact 95% of your posting history has been on CFE. And all of them are of a similar tenor to this - negative. Which leaves me very suspicious of your motives - either you hold stocks despite having no confidence in their value or in their management (and that being the case, why would we take note of such an investor?). Or, your talking down of these iron ore companies (both takeover targets) like CFE (and now AKI) is corporately motivated.

So, which is it?

There is a credibilty gap when a person's money (their shareholding) says one thing (hold the stock because it will increase in value), and a poster's posts say another (the stock has no value because the company isn't selling iron ore NOW). They don't match, hence the credibility problem.

So Flyingdoc, which is it? Do you invest in companies (like CFE and AKI) who you have no faith in and see no value in? Or is there another hidden agenda for your systematic downramping of CFE (and now AKI)?

Yaq

Disclosure: I hold no AKI directly, but have an indirect interest via my CFE holding.