Hello Tony.

The $700,000 to $960,000 (for KWG) that you spoke of a few hours ago is now $1.05 million (for the moment). So far as we always being left behind, indeed, as you colorfully put it, “The market is messed.”

Did you expect otherwise? Enquiring minds want to know. Just what was it that you did expect?

The bizarre price of Fancamp’s Shares is “disconnected”—in the literal meaning of the word—from the hard reality of Fancamp’s hard assets. There are no gradations of “disconnectedness.” You are or you aren’t. When you speak to someone on the phone and you get disconnected: It is futile to keep on talking without someone redialing first. No matter how loud you shout (without either party redialing), your voice will not be heard on the other end.

As it is when you have a conversation on the telephone, it is possible to have a bad connection. However, Tony, I have news for you.

The disconnect we are experiencing (between price and value) is not a bad connection (or a “messed” connection). It is a broken connection. So far as the hard realities, the connection that you and many others keep talking about and keep looking for (and expect to find) simply does not exist any longer. When the line is dead, that’s not the same as it being “a little dead” or “somewhat dead” or “fairly dead” or “dead to some degree.” Dead is dead.

Can a dead connection be brought back to life?

Yes. But it takes strong willpower. Unfortunately, I know from personal experience, over the course of the last three years, every attempt at redialing has not worked. No matter how many times, no matter how many people make heartfelt pleas to the Chief Repairman, every plea is answered with “silence” on the other end (that is, “not a low voice” but “total and absolute silence”).

By the way, on the subject of getting KWG shares instead of cash: So far as I’m concerned, getting cash would have been better, had it been used to purchase our own shares. As it is, however, I’m very pleased with the KWG shares, which are also a great value, albeit lesser value than our own.

Aside from pure valuation, I like the idea of our increasing our stake in KWG because it gives us greater strength and balance to our diverse portfolio of partner company assets (which will not remain disconnected from reality forever). More and more, we’re becoming a fund of companies. Given today’s market, that’s becoming more and more comforting for a small company, compared to going it alone.

Remember, besides the commodity and stock price cycles we’re all familiar with; as well, there are cycles (and rotations) of flesh-and-blood executives. For small public companies, change at the top means a whole new culture.

No matter how bright and snappy, when CEOs stay on the job well past retirement age, with each passing year, the enticements of rest and relaxation become harder and harder to resist. Also, for Middle Management (and the main Shareholders), with each passing year (if not with each passing day), patience grows thinner and thinner.