If TPL management were to use one company as a model for them to
emulate, (I think this was an idea of H-K) it would be FNV, Franco-
Nevada Corp. Basically, it is a royalty streaming company. If I
had to pick a company to acquire TPL...this would be a contender.
The key to TPL doing well in the future would be to never take
on debt, continue to buy back stock, and (maybe) consider making a
royalty streaming (perhaps in metals) investment. Right now the
most undervalued (and misunderstood) area of the market are Met Coal
companies...as one example, Warrior Met Coal, went public a few years
ago and has since paid out special dividends totaling more than than
the IPO price. HCC at around $20 sells at a TTM PE of around 1.6!
HCC only exports Met Coal and has minimal liabilities. HCC will
soon decide if they should build a new mine, or not. Much depends
on if they can get the right offtake agreement(s) in place to assure
them that the Met Coal would be purchased. There are some undervalued
assets out there, but bone-headed managements usually pay top dollar
for some overvalued POS company. The most critical risk to TPL right
now, is who will manage TPL. TPL has a fantastic asset base right
now...but foolish management decisions can have a very adverse affect
that can quickly destroy market value. (Such as the idiocy over
the trustee election.) To think, all the 2 (IDIOT) incumbent
trustees had to do was welcome the candidate by its largest
shareholder and pledge to work with him for the ultimate benefit
of shareholders...and the share price would likely be a great deal
higher today...at least the earnings certainly would have been
higher. Good managements create value, poor managers destroy it.
I hope TPL sooner or later has "good" management. Sorry for the
much too long Sunday morning sermon. (LOL)
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