Fair point, but those guys also got the convertibles that they control and have/ will clean up on those. For RCPS they were supposed to get an interest coupon which was still a decent clip and if the company couldn't repay, they could be paid with equity. The company had the right to redeem them and as you mention with the cash flow above, clearly have the means to do so. They have failed to, and that mistake will be paid for by me and the rest of the register. Those funds have also have seen their existing holdings increase by 8 fold (as have I) but I think they have done ok for their risk without this extra clip that the directors are so graciously sharing in.
They mention the infrastructure they got, but so far haven't given us the faintest on how they intend to use it to sell our product in Escarpment! Maybe if they did we wouldn't be such a screaming buy because we might trade closer to intrinsic value.
BRL Price at posting:
15.0¢ Sentiment: Hold Disclosure: Held
