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Consolidated Rock Holding Company

Consolidated Rock Holding Company

Consolidated Rock - Investment Holding Company of Sultan Ameerali

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Privatization Situation: Canaccord

January 14, 2023

Sacha at Divestor breaks down the Canaccord privatization proposal by management, including a detailed look at the balance sheet and where the value may be hiding. But it was this quote that spoke to me.

“One danger of investing in smaller-capped companies is that on occasion you will have management try to low-ball an acquisition of the rest of the company. Jimmy Pattison’s firm tried to take out the minority stake in Canfor (TSX: CFP) which nearly succeeded. I still remember being resentful when Cervus Equipment got taken out by management. Almost anything with the name “Brookfield” in it is susceptible to this phenomena. There are plenty of other stories out there. The danger of having these management-lead buyouts increases in proportion to the smallness of the company and the proportion of ownership of management. “

— Divestor

The whole article is worth a read. After having several company’s stolen out from under me in 2022, I’ll be investing in fewer micro caps going forward. The strategy is significantly less effective if you can’t let your winners run to subsidize the losers.

My other general rule is avoiding publicly-traded subsidiaries: I want to own the company extracting the fees rather than the one paying them. Something to keep in mind as you look at Brookfield, Fairfax or Glencore related companies that may appear in equity screens.

Filed Under: Notes and Concepts

Recent Posts

  • Mid-year review: Metals and Mining Positions
  • Carbon Streaming cash box
  • Interesting links: June 2025

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Investor. Don’t buy any stock because I mentioned it. Boxer, award-winning reporter, author in a different life. Ex-BNN, 680News, CTV News etc

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sultanameerali Sultan Ameerali @sultanameerali ·
24h

Orogen spinco starts trading Friday.
59,359,932 shares outstanding, with $ALS.TO and $TFPM.TO both owning large chunks of the company.
Ticker remains $OGN.V.

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simpsons_dg Simpsons Daily Glavins @simpsons_dg ·
8 Jul

Attention, Marge Simpson. Your son has been arrested...

Attention, Marge Simpson. We've also arrested your older, balder, fatter son.

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sultanameerali Sultan Ameerali @sultanameerali ·
9 Jul

“These rising copper prices have enabled Amerigo to execute its strategy of eliminating minimal debt by year-end 2025, while continuing to fully deploy its Capital Return Strategy.”

Special dividend on the way.

Junior Mining Network @JrMiningNetwork

Amerigo Resources Reports Q2-2025 Operational Results $ARG.TO https://www.juniorminingnetwork.com/junior-miner-news/press-releases/1282-tsx/arg/183380-amerigo-reports-q2-2025-operational-results.html

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sultanameerali Sultan Ameerali @sultanameerali ·
9 Jul

China is pursuing a strategy of buying more gold and reducing its dependence on USD.
China's foreign exchange reserves are the largest in the world, which is why even a low proportion of gold (2,298 tons) is enormous in absolute terms.

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reuterscommods Reuters Energy and Commodities @reuterscommods ·
8 Jul

Why China's ultimatum to Myanmar rebels threatens global supply of heavy rare earths

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Recent

  • Mid-year review: Metals and Mining Positions June 29, 2025
  • Carbon Streaming cash box June 29, 2025
  • Interesting links: June 2025 June 29, 2025

Recent

  • Mid-year review: Metals and Mining Positions
  • Carbon Streaming cash box
  • Interesting links: June 2025

Categories

  • Substack Newsletter
  • Mining Stock Education Interview – April 2025
  • TD Direct Investing Webinar
  • Mining Stock Education Interview – Aug 2023
  • Andy Millette Interview
  • Globe B2B Marketing Panel
  • Seeking Alpha

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