Swizzled Posted December 21, 2010 Share Posted December 21, 2010 Anyone here interested in this tiny little spin-off ? It looks like pure speculation really, but if you could get it for the value of it's fixed assets maybe worth a nibble ? http://valueinvestorcanada.blogspot.com/2010/12/contango-spinoff-of-core.html Link to comment Share on other sites More sharing options...
oldye Posted December 21, 2010 Share Posted December 21, 2010 There aren't any real fixed assets here they're taking ore samples on an indian reservation in Alaska looking for commercially viable gold and rare earths. Its purely a exploration play that won't have any developments for a long time. Link to comment Share on other sites More sharing options...
merkhet Posted December 21, 2010 Share Posted December 21, 2010 If you're looking for a spin-off play, I saw that Huntington Ingalls (Northrup spin-off) just updated their information. That could be a good one to look at over the weekend. Link to comment Share on other sites More sharing options...
zippy1 Posted December 22, 2010 Share Posted December 22, 2010 Anyone here interested in this tiny little spin-off ? It looks like pure speculation really, but if you could get it for the value of it's fixed assets maybe worth a nibble ? http://valueinvestorcanada.blogspot.com/2010/12/contango-spinoff-of-core.html Thanks for posting this. Strangely, normally we would see forced selling to drive down the price. Instead, it has gone up 65% yesterday! Link to comment Share on other sites More sharing options...
Swizzled Posted December 22, 2010 Author Share Posted December 22, 2010 Yes, a good call by me. Forced selling or a double in 2 days. I knew it would be one or the other...... :o Link to comment Share on other sites More sharing options...
zippy1 Posted December 23, 2010 Share Posted December 23, 2010 Yes, a good call by me. Forced selling or a double in 2 days. I knew it would be one or the other...... :o Ha! Ha! Seriously, anybody knows how to value a company like this? I don't think buying into this company will affect my networth due to its small size; however, I am really curious about how one would value this kind of company. Link to comment Share on other sites More sharing options...
zippy1 Posted December 28, 2010 Share Posted December 28, 2010 Does anybody on the board knows how to determine the tax cost basis for these core shares from the spin-off? I only found a statement in their press release saying there is $4.60 asset per share. Is this considered the tax cost basis? Link to comment Share on other sites More sharing options...
dcollon Posted December 28, 2010 Share Posted December 28, 2010 Based on what we have, it was a taxable distribution therefore no old cost basis was carried over. The basis was based on the average of high/low on 12/20/10 which was $5.01. That is the guidance we received from a couple of our transaction services. However, I would suggest you verify my comments with your custodian. Link to comment Share on other sites More sharing options...
zippy1 Posted December 28, 2010 Share Posted December 28, 2010 Based on what we have, it was a taxable distribution therefore no old cost basis was carried over. The basis was based on the average of high/low on 12/20/10 which was $5.01. That is the guidance we received from a couple of our transaction services. However, I would suggest you verify my comments with your custodian. Dear dcollon, Appreciate very much your advice. Zippy1 Link to comment Share on other sites More sharing options...
sdev Posted January 18, 2011 Share Posted January 18, 2011 Man I haven't held shares in a company that was this overvalued since I was in middle school and thought I was a genius investing in tech stocks. :P Link to comment Share on other sites More sharing options...
Rabbitisrich Posted January 19, 2011 Share Posted January 19, 2011 Based on what we have, it was a taxable distribution therefore no old cost basis was carried over. The basis was based on the average of high/low on 12/20/10 which was $5.01. That is the guidance we received from a couple of our transaction services. However, I would suggest you verify my comments with your custodian. It should be a tax free spin-off unless the IRS somehow rules that it was part of a plan equivalent to a sale or a merger. Link to comment Share on other sites More sharing options...
Rabbitisrich Posted January 19, 2011 Share Posted January 19, 2011 Oy, actually section 355 requires 5 years of active business prior to the spin off to be accorded tax-free status. Link to comment Share on other sites More sharing options...
OracleofCarolina Posted January 23, 2014 Share Posted January 23, 2014 http://www.businesswire.com/news/home/20140123006428/en/Contango-ORE-Announces-Engagement-Strategic-Advisor-Initial#.UuGpWng77CS Well, wonder if someone will buy?? Link to comment Share on other sites More sharing options...
ItsAValueTrap Posted January 24, 2014 Share Posted January 24, 2014 My analysis here Here's a derpy way of valuing the company: you take the indicated resources and arbitrarily multiply by $100-$300. If they're being honest and aren't inflating the resources then you might end up in the right ballpark. This yields a value of $75-235M. Market cap $35M. I'm pretty sure that they discovered something real... but my batting record at predicting these things has been shoddy. Link to comment Share on other sites More sharing options...
yadayada Posted January 24, 2014 Share Posted January 24, 2014 in the cases where you were wrong, what were the reasons you were wrong? Things you overlooked that you did not overlook now? I dont know much about mining, but its interesting to read how to value a deposit. Link to comment Share on other sites More sharing options...
ItsAValueTrap Posted January 25, 2014 Share Posted January 25, 2014 Development-stage projects are high risk because there are uncertainties regarding a lot of economic factors. KWG & Noront I think what tanked Cliffs' Ring of Fire mine were the infrastructure costs. There may have also been some metallurgy issues. Cliffs never released their feasibility study so I don't know the exact details. You only get a good estimate on infrastructure costs after doing the engineering work to estimate the costs. *I messed up because I didn't read Cliffs' investors presentation earlier. It had economic data in it. Noront's deposit is affected by whether or not Cliffs builds their mine and on nickel prices. Nickel prices tanked. For Selwyn, it's infrastructure costs. I don't know what's wrong with Premier. 2- I actually don't like mining stocks and exploration stocks. Link to comment Share on other sites More sharing options...
Ballinvarosig Investors Posted September 6, 2016 Share Posted September 6, 2016 Can anyone say, gold rush!? I held the stock from the original spin-off even after selling MCF years ago (it was a tiny position and I always liked Brad Juneau so was ok with having a lottery ticket in my portfolio). Now it's risen 130% above the original spin-off price and up 5x YTD. I am not a mining expert by any stretch, but recent core results do suggest that they have found commercial grades of gold and combined with being a low cost operation, it looks like Contango could be onto something. At 80x book value I would NOT recommend buying it, but I am ok with holding it. Link to comment Share on other sites More sharing options...
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