Most of my family held MBN, pre and post DOCA, I wanted to get some Nickel exposure for my portfolio and was deciding on which firms to buy, MBN did catch my attention but i felt that the return did not justify the risk. I instructed my family to sell out in the mid teens, as i felt that MBN would not be able to operate in these conditions. I stopped trusting management as soon as i saw their BS prediction that NP is going to $9. Remember that chart? it was in one of the quarterlies/presentations. Someone should have lost their job over that.
I trade a lot of commodity based firms, i have to admit i do not have skin in the game for MBN nor do i know the firm as well as some people here. But one thing is for certain, management stuffed up with the noteholding contract. They allowed the noteholders to call in their notes without notice. I would have expected that the agreement to be amended but apparently not.
I as a non-holder am un-biased and unaffected by this, it means i do not have emotion nor do i mind if the firm relists, goes broke or is simply sold off. It makes no difference to me, i am here purely to learn. Why? One day i might hold a stock which is in a similar situation, id like to think that there were some indicators before everything went south, hopefully by learning these i can sell before it goes into a VA. By learning from this experience i can potentially avoid investing in similar firms in the future.
FYI the receivers dont care about shareholders, they will sell the mine for whatever the highest bidder pays at the time, as long as they cover the debt they are happy. The likely outcome is that the mine will be sold off cheaply. It will probably sit in maintenance and care for years to come until NP increases in price and the mine can be operated at a margin.
What will happen to MBN? I have no clue, hence why im here to watch.
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