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Message: Another BMO FT financing ? That´s ridiculous! 2012 all forgotten ? Deja vu ?
Part III regarding BMO PP involvement and coverage:
My letter to Probe:
"Dear Karen,
dear David,
I´m a long-term shareholder of Probe Mines since 2006 and I appriciate that the company has come a long way since.
Congratulations to the newest RE update for Borden Lake.
Although "the market" didn´t receive it that positive, I have a very serious question to you, where I expect a direct answer from the company.
I was made aware of a BMO update sent out after yesterday´s NR with the following contents:
"Using the spot gold price, Probe’s shares are trading at a 7% discount to our 10% NAV estimate of US$1.45/share, above the junior and emerging producers in BMO Research’s coverage universe, which trade on average at a 22% discount.”
And here´s my question:
How comes that BMO, our "SOLE AGENT" for a $25M PP in April 2011 AND our "LEAD UNDERWRITER" for a $15.19M PP in November 2011 (that´s $40M at $1.35 and $2.45 FT respectively !!!) values Probe at a tiny $1.45 per share, when other brokers covering the story come up with valuations between $4.00 and $5.00 BEFORE the latest RE update ?
And BMO is even saying that $1.45 is already BETTER than compared to the rest of BMO´s coverage universe !
That´s a complete joke !
What is the company going to do about this situation ?"
dear David,
I´m a long-term shareholder of Probe Mines since 2006 and I appriciate that the company has come a long way since.
Congratulations to the newest RE update for Borden Lake.
Although "the market" didn´t receive it that positive, I have a very serious question to you, where I expect a direct answer from the company.
I was made aware of a BMO update sent out after yesterday´s NR with the following contents:
"Using the spot gold price, Probe’s shares are trading at a 7% discount to our 10% NAV estimate of US$1.45/share, above the junior and emerging producers in BMO Research’s coverage universe, which trade on average at a 22% discount.”
And here´s my question:
How comes that BMO, our "SOLE AGENT" for a $25M PP in April 2011 AND our "LEAD UNDERWRITER" for a $15.19M PP in November 2011 (that´s $40M at $1.35 and $2.45 FT respectively !!!) values Probe at a tiny $1.45 per share, when other brokers covering the story come up with valuations between $4.00 and $5.00 BEFORE the latest RE update ?
And BMO is even saying that $1.45 is already BETTER than compared to the rest of BMO´s coverage universe !
That´s a complete joke !
What is the company going to do about this situation ?"
FANTOMAS
And here are snippets from the answer mail:
"The majority of analysts covering Probe clearly have a different opinion than that of the BMO analyst – as do we.
I completely understand your concern and frustration. I can assure you that Probe takes its business relationships very seriously; notes how well each partner performs and then acts accordingly."
......
My answer:
Thanks,
good to know, that the company will NOT use BMO as "Lead Underwriter" and "Sole Agent" anymore.
I hope that these "financial sharks" will be singled out from many companies. There are certainly some houses out there that are "reliable". I trust, you know those.
I certainly don´t do any business with BMO from now on.
Best Regards,
good to know, that the company will NOT use BMO as "Lead Underwriter" and "Sole Agent" anymore.
I hope that these "financial sharks" will be singled out from many companies. There are certainly some houses out there that are "reliable". I trust, you know those.
I certainly don´t do any business with BMO from now on.
Best Regards,
XXXXX
I definitely have a deja vu !
FANTOMAS
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