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Wednesday, April 09, 2014 1:20:30 AM
Banro’s Institutional Ownership Skyrockets – Takeover Imminent
Disclaimer (See 2.25/2.26 - http://ihwiki.advfn.com/index.php?title=FAQ:Deletions_and_Restores)
There are all kinds of companies out there but there is one kind of company I’m always on the lookout for. I believe Banro is that kind of company. This is the kind of thing that you can’t just sum up with a couple words. Just like my ideal woman can’t summed up by saying “blue-eyed blonde” or “sassy redhead”…I mean she has to have green eyes, an easy smile and it would take me a page just to describe her compassion.
Luckily we aren’t talking about something that important. I should be able to describe the companies I look for in just a paragraph or two. They are over a decade old. The original founder is either still involved or dead. They not only have a business plan but they follow it. They are conservative in their outlooks and take safe, measured steps. They don’t take the next step until they are assured the ground beneath their last one is firm and will support them. They take very good care of the people working for them. Not the brass with big payouts but the people who will likely have more than a passing word with the brass.
When I find a company like this I pay attention but I don’t buy instead I wait for the right time. I know that time is near when they start borrowing a lot of money. I don’t buy right then but I know that after a decade or more they are setting up to make their move. The board of directors of any company face a couple big roadblocks when it becomes “go time”. Here they are ordered from biggest to smallest. The current CEO and CFO, the shareholders, the government(s), competition (which may bring in the government yet again), other board members and the public.
CEO’s and CFO’s can be a real pain. For example Steve Jobs destroyed Apple and cost them a couple decades. The shareholders can block things from happening. Governments, competition and other board members are pains and like the public they can all involve the courts systems.
Banro has all my gauges pegged! They decided now is the time and gold’s historic run probably helped with that. Mr. Kondrat, the principal founder is still there and probably looking forward to seeing what he built take off and provide his family with security for the next 10 generations. Banro dumped their CEO. Their CFO has been with Banro since the beginning…1996! Banro’s relationship with the Congolese, the DRC and the government has been covered in depth.
Onto the shareholders…and the numbers part of this. For a buyout, takeover or merger to occur Banro has two options. First they could try and sell shareholders on it, then send out a proxy and then when the voting results came in they would hope for 51% and then execute their plan. Now you and I may vote for it…but BMO and others may rather see Banro continue to borrow from them and sell them cheap shares. The last thing they want is Banro to merge or be taken over…unless of course they get to name the price. So while you and I may be very happy with $7 a share…BMO may team up with CIBC and others and wreck it because they want either $12 or the status quo. Plus now that they know what Banro is worth they won’t be caught by surprise and they’ll really cause problems.
Okay! With all that said…how does a board overcome both rogue financiers and possibly a shareholder base that the rogue financiers could corrupt and get to vote against Banro’s wishes? With bigger, better and stronger financiers of course! Enter the numbers!!!
I propose that over 70% of Banro is now owned by institutions and that Banro will be the target of a merger or acquisition in 2014 and likely in Q2.
As of 12/31/2013 institutions owned 117,704,617 shares of Banro. So far in 2014 the following moves have been made by institutions.
Institution (Change in Share Count)
JP Morgan (-18,738)
http://www.sec.gov/Archives/edgar/data/19617/000001961714000044/BANROCOR.HTM
Franklin (1,633,592)
http://www.sec.gov/Archives/edgar/data/38777/000003877714000030/banr13a1.htm
Tradewinds (-101,838)
http://www.sec.gov/Archives/edgar/data/1286597/000090901214000116/t307340.txt
Van Eck (26,231,219)
See Picture #1 Below
BlackRock (27,832,976)
http://www.sec.gov/Archives/edgar/data/1286597/000108636414000205/banro.corporation..txt
Gramercy (971,050)
See Pictures #2 & #3 Below
These changes result in a net increase of (56,548,261) which pushes institutional ownership to .6912. Gramercy has purchased far more than the 971,050 but I do not have proof. Aside from the numbers themselves what is important is the type of institution. BlackRock isn’t invested so they can nickel and dime Banro like BMO. Neither is Gramercy. I do not have a lot of information on Van Eck but since their 62-103 form is “As of February 28th, 2014” I think it is both a recent and strategic position. Van Eck invests on behalf of many clients and I believe they were contacted with the sentiment that they would be Banro friendly.
What all of this tells me is that Banro is about to make a very big move. China National Gold Corporation is still at the top of my list. There are many others though that could be interested including Barrick Gold. We may even see a bidding war. What I know for a fact is with BlackRock, Gramercy, Van Eck we have three large investors all taking huge positions over a tiny 3 months span in a company that has been 18 years in the making!
Thank you for your time and I wish you all the best with all your investments!
Picture #1
Picture #2
Picture #3
Disclaimer (See 2.25/2.26 - http://ihwiki.advfn.com/index.php?title=FAQ:Deletions_and_Restores)
There are all kinds of companies out there but there is one kind of company I’m always on the lookout for. I believe Banro is that kind of company. This is the kind of thing that you can’t just sum up with a couple words. Just like my ideal woman can’t summed up by saying “blue-eyed blonde” or “sassy redhead”…I mean she has to have green eyes, an easy smile and it would take me a page just to describe her compassion.
Luckily we aren’t talking about something that important. I should be able to describe the companies I look for in just a paragraph or two. They are over a decade old. The original founder is either still involved or dead. They not only have a business plan but they follow it. They are conservative in their outlooks and take safe, measured steps. They don’t take the next step until they are assured the ground beneath their last one is firm and will support them. They take very good care of the people working for them. Not the brass with big payouts but the people who will likely have more than a passing word with the brass.
When I find a company like this I pay attention but I don’t buy instead I wait for the right time. I know that time is near when they start borrowing a lot of money. I don’t buy right then but I know that after a decade or more they are setting up to make their move. The board of directors of any company face a couple big roadblocks when it becomes “go time”. Here they are ordered from biggest to smallest. The current CEO and CFO, the shareholders, the government(s), competition (which may bring in the government yet again), other board members and the public.
CEO’s and CFO’s can be a real pain. For example Steve Jobs destroyed Apple and cost them a couple decades. The shareholders can block things from happening. Governments, competition and other board members are pains and like the public they can all involve the courts systems.
Banro has all my gauges pegged! They decided now is the time and gold’s historic run probably helped with that. Mr. Kondrat, the principal founder is still there and probably looking forward to seeing what he built take off and provide his family with security for the next 10 generations. Banro dumped their CEO. Their CFO has been with Banro since the beginning…1996! Banro’s relationship with the Congolese, the DRC and the government has been covered in depth.
Onto the shareholders…and the numbers part of this. For a buyout, takeover or merger to occur Banro has two options. First they could try and sell shareholders on it, then send out a proxy and then when the voting results came in they would hope for 51% and then execute their plan. Now you and I may vote for it…but BMO and others may rather see Banro continue to borrow from them and sell them cheap shares. The last thing they want is Banro to merge or be taken over…unless of course they get to name the price. So while you and I may be very happy with $7 a share…BMO may team up with CIBC and others and wreck it because they want either $12 or the status quo. Plus now that they know what Banro is worth they won’t be caught by surprise and they’ll really cause problems.
Okay! With all that said…how does a board overcome both rogue financiers and possibly a shareholder base that the rogue financiers could corrupt and get to vote against Banro’s wishes? With bigger, better and stronger financiers of course! Enter the numbers!!!
I propose that over 70% of Banro is now owned by institutions and that Banro will be the target of a merger or acquisition in 2014 and likely in Q2.
As of 12/31/2013 institutions owned 117,704,617 shares of Banro. So far in 2014 the following moves have been made by institutions.
Institution (Change in Share Count)
JP Morgan (-18,738)
http://www.sec.gov/Archives/edgar/data/19617/000001961714000044/BANROCOR.HTM
Franklin (1,633,592)
http://www.sec.gov/Archives/edgar/data/38777/000003877714000030/banr13a1.htm
Tradewinds (-101,838)
http://www.sec.gov/Archives/edgar/data/1286597/000090901214000116/t307340.txt
Van Eck (26,231,219)
See Picture #1 Below
BlackRock (27,832,976)
http://www.sec.gov/Archives/edgar/data/1286597/000108636414000205/banro.corporation..txt
Gramercy (971,050)
See Pictures #2 & #3 Below
These changes result in a net increase of (56,548,261) which pushes institutional ownership to .6912. Gramercy has purchased far more than the 971,050 but I do not have proof. Aside from the numbers themselves what is important is the type of institution. BlackRock isn’t invested so they can nickel and dime Banro like BMO. Neither is Gramercy. I do not have a lot of information on Van Eck but since their 62-103 form is “As of February 28th, 2014” I think it is both a recent and strategic position. Van Eck invests on behalf of many clients and I believe they were contacted with the sentiment that they would be Banro friendly.
What all of this tells me is that Banro is about to make a very big move. China National Gold Corporation is still at the top of my list. There are many others though that could be interested including Barrick Gold. We may even see a bidding war. What I know for a fact is with BlackRock, Gramercy, Van Eck we have three large investors all taking huge positions over a tiny 3 months span in a company that has been 18 years in the making!
Thank you for your time and I wish you all the best with all your investments!
Picture #1
Picture #2
Picture #3
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