Replies to post #2842 on FEC Resources Inc. (FECOF)

[downsideup]

I do think it is likely that if Philex DIDN'T own more than 50%... that "benefit" you would prefer, wouldn't necessarily mean that the market would suddenly find Forum and FECOF were worth a whole lot more...

Instead, if there were a wide open market with a potential for other players to take over control of Forum or FECOF... I have little doubt that what you might see instead of a bidding war for Forum and FECOF shares... might be a flock of vultures rolling in trying to take them both down HARD... in order to use "market forces" to try to accomplish exactly what you already express as a "concern" about having an owner of shares that ALREADY owns a controlling stake ?

You think Goldman Sachs couldn't take the Forum or the FECOF share price down... and then try to buy them up for fractions of the pennies they trade for now... if they wanted to ?

That parent Philex DOES own a majority stake and controlling interest... and has deep enough pockets to matter... isn't just a source of risks that the companies we own might be bought out at some future point at a price higher than they trade for now, but below their true (future) value. It is also a useful thing, that means there really isn't going to be any market benefit available to those vultures who might otherwise think shorting FECOF or Forum, or both, into oblivion... would be a perfect way to try to buy up control over their assets at fire sale prices.

I'm not ignorant of the risks in having Philex own Forum and FECOF... but, I'm also not going to feign being ignorant of the many, and large, REAL benefits of it...

I think those who went short FECOF at $0.05 and below on Thursday... probably aren't feeling so good about making that trade, today. Given what is OBVIOUS in our DD and our discussions here... why anyone would even want to try to engage in a market contest by shorting FECOF stock now... truly baffles me. But... I guess things just wouldn't be all that interesting if everyone always agreed about everything ?

[GreenTea]

LOL, no apology necessary styl. I'm often compared to asian women.

True, Philex didn't pay a premium for the original 220 million shares, but to me that's just smart business. The fact that Philex bought the financing shares (5 million shares) at .50/share leads me to believe Philex wanted to preserve equity. Why else would they do it? It could be in their best interest to buyout the remainder of FECOF's shares. Or, it may be in their best interest not to. It could be in their best interest to hold onto the 225 million shares and ride it up. Keeping FECOF as is allows for investors in the Canadian and U.S. markets to easily invest in what could be a world class natural gas deposit.

We'll all just have to wait and find out.

GLTA!