In the February monthly partner letter, Takota details the workings of one of its specialty structured transactions, illustrating how an 8.8% income was derived more safely with a structured trade than by just investing in high yielding (and usually higher risk) fixed income securities.

Portfolios managed by Takota Asset Management Inc., especially those focused on income first and capital gains second, make use of such structured transactions. Call us for further details.


(Abridged from client letter) – Melior Resources can best be viewed as a call option on the titanium dioxide market. Here is what we like about it.

1. With the project alterations currently being completed the Company should be able to deliver to Asia (mostly China but also Japan and Singapore) a better quality ilmenite (titanium ore) at the same cost as what the Chinese producers themselves can provide to the market in Asia.

2. The Project is debt free.

3. The decline in the Australian dollar will enhance the Project’s competitiveness as does a decline in the price of oil, which has reduced the cost of shipping.

4. Fourth but perhaps most importantly is the incentive to the individuals who vended the project to Melior and who make up senior management. They have an earn out which requires the share price of Melior to be at a minimum of .41 cents before they start to earn their shares and they only get their full allocation of shares at $1.11 per Melior share. Takota favours this kind of incentive based reward and obviously as the vendors are successful in earning their shares Melior shareholders stand to benefit substantially i.e. to a possible magnitude of 400 – 1200% return from current prices if the vendors are successful in meeting the criteria for their earn out shares currently held in escrow.


Scott Leckie, Principal of Takota Asset Management has today resigned from the Board of Groupe Bikini Village. Portfolios managed by Takota Asset Management Inc. are senior secured creditors and shareholders of Groupe Bikini Village.


Mr. W. Scott Leckie, Principal of Takota Asset Management, a significant investor in Groupe Bikini Village, announced today that he will step down as Chairman of the Board of Groupe Bikini Village to be succeeded by Mr. Jocelyn Dumas as Executive Chairman as the Company directs its focus on the transformation of its existing business. Mr. Leckie will continue to serve as a Director of the Corporation.
In the press release issued by Groupe Bikini Village, Mr. Leckie also said: “After a thorough review of any possible strategic alternatives, the Board has determined that none of those options is as attractive as taking advantage of the opportunities inherent in the Bikini Village brand and assets. To this end, the Board is pleased to have found an experienced and skilled executive to lead the Corporation through its needed transformation. We welcome Mr. Dumas to Groupe Bikini Village as Executive Chairman.”
News release from Groupe Bikini Village.


140425 FINANCIAL POST – Barry Critchley – Sherritt


The attached press release was sent out today in response to shareholder and press interest in our opinion of the proxy contest being fought between Sherritt International and a group of investors led by Clarke Inc.

140416 Takota Press Release on Sherritt proxy contest

***************


In view of the comments we offered at the November 2013 annual meeting of Melior Resources, we are pleased to see that Melior has now implemented a number of the actions we had suggested:

– put Melior cash reserves to work by announcing the purchase of an Australian mining company, Belridge Enterprises Pty Ltd, owner of a mothballed titanium dioxide and phosphate mine that can be profitably restarted,
– restructured the Board of Directors to better manage this acquisition, and
– cut Board fees by 33%.

As a significant minority shareholder, we will continue to monitor closely Melior Resources’ progress.

(Melior News Release: Melior-Belridge and Change of Business )

***************


… “We believe that a capable management overseen by a responsible Board can create financial leverage for shareholders by taking that cash and investing it in a business opportunity thereby turning our $1.00 of cash purchased for $0.50 in to $1.50 or $2.00 in value,” said Leckie who is not prepared to give management an unlimited amount of time to create value. …

Read article:  131119 FP Melior – B Critchley

***************


Groupe Bikini Village is a leader in the retail sale of beachwear products with a network of new and renovated boutiques across Eastern Canada.

***************


This letter is being sent in advance of Sherritt’s Annual Meeting to be held May 23, 2013 to suggest a stock buyback as a better way to enhance shareholder value following Sherritt CEO’s comments about making acquisitions.

Letter to Sherritt Board May 7 2013

***************



Print This Post