They are probably doing exactly what you think they are doing... managing lots of junior companies, lining their pockets with cheap shares from each and every one of them, shifting their money around to maintain diversification... feathering their nests for now and the future, building horrendous wealth for themselves. We are just fodder. The ASX allows it and they take advantage of it. The smart retail and sophisticated investors take advantage of it by either following suit (by staying in a diversified array of juniors and averaging up upon the dips) or by trading the short to medium term multi-baggers.
The fact that PW's director's fees in Bass Metals get paid into BCP and not directly to him means that BSM, LNY, AJQ and however many others that BCP have in "their portfolio" get chucked into one big "Witches Cauldron" if you like. Bizzell chucks all the little companies vying for attention into the one huge pot, to be mixed up, stirred around into one big tasty feast for the Bizzell camp. Some ingredients evaporate in the process, some come to the surface at various times as the heat gets turned up and all get diluted as they get their ladle to feed their hunger along the way. The bread and butter on the side, of course, is the lucrative wages that they pay themselves and others like the CEOs, CFOs and directors along with cash bonuses and performance rights. Their mates (those in the Top 10 SH list of ALL these companies) join them, of course, for their regular "All You Can Eat Buffets".
The Witches Cauldron is the ultimate in "diversification"! They make it part of the "game" in running their successful business... can't blame them but I guess you can take them to task over it. What I am rapidly believing is that you either try and play the game (by staying ahead of it) or simply forfeit the game and watch from the sidelines. To try and take on the role of ASIC and be the referee is futile. What director's do with their money (from sales of their own shares) at the end of the day may be our business but they do have the right to do what they want with it and we can't stop them. I am on your side, Docmin, the whole system is geared towards making the Big Boys wealthy but they take the same big risks. It is relative and we have to admit that we are not here for non-selfish reasons either. It does work both ways.
Fiduciary duty or lack thereof is the BIG ISSUE... the only issue we can take them to task over... not how directors choose to spend their money. I agree, it shouldn't sit well with shareholders that PW may have directed money to Bass or to some other opportunity on the ASX (perhaps), but that is his prerogative. He may have every intention of freeing some up and reinvesting here next month... who knows? Bet no one would be unhappy with that.
As I think Dugsab once said. "It is only a rort if you are not in on it". So, true... and wouldn't we all like to be in on it. Some here are riding the wake and taking advantage of it, whilst the rest of us are a bit slow on the uptake (me included).
LNY Price at posting:
0.6¢ Sentiment: None Disclosure: Held
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