Post by fastwalker on Oct 24, 2004 23:27:06 GMT -5
:oworth rereading...FW
By: bill19336
***How does a roll up fit into the picture?
+++++++++++++++++++++++++++++++++++++++
First, let's establish what a roll up is. The definition from Investopedia states the following: In the context of venture capital, when a VC forces small companies to merge in order to reduce costs. If you see Urban as a venture capitalist it's easy to see the perfect fit with everything he has done to date.
Second, let's establish the basic goal of a roll up. The easiest way to understand it, at least for me, is to envision a series of small, scattered and inefficient Mom and Pop grocery stores. Apply economies of scale to the equation and you can see the advantages of transforming those scattered stores into a chain of supertstores (this is the basic business model Walmart applies to retail and Home Depot applies to hardware). Just transfer the example to mining and you've got Urban's master plan. He saves money by centralizing and efficientizing every step of the process, that is, taking minerals from the ground to the store shelf and squeezing costs every step of the way.
So how do roll-ups fit into CMKX's future? First, they lie well within the boundaries of the business model I have speculated that Urban is following. Thus far Urban has steadfastly adhered to the model and I expect him to continue. Additionally, roll ups were specifically mentioned in the Dec. 4, 2002 PR (see A. below). Finally, Edawards and Angell have sponsored seminars regarding roll ups and is quite familiar with the process (see B. below).
So what does it mean? In my opinion, ("CMKX") is destined to become an exploration company with a financial arm and a "turn-key" project management arm. UCAD will provide the operating management, and Urban will provide the other services (i.e., legal, marketing, distribution, etc.) that will complete a fully integrated marketing system. In other words, Urban will take diamonds and other minerals from the ground directly to the consumer. Additionally, the financial arm will use Urban's large shareholder base as leverage in the acquisition, management and sale of assets.
At this point, I'm not sure which company will take the lead (i.e., CIM, UCAD, CMKX, etc.) but the economies of scale and synergy inherent in this combination make it a foregone conclusion. While the exact structure remains a bit nebulous, the inevitable march toward that goal is undeniably relentless. The future will be very bright for those with the foresight to see beyond the tip of their nose.
Good Luck and it's all speculation
Notes:
A From the Dec. 4, 2002 PR:
www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=75107
This is the first in many targeted acquisitions and ""roll-ups"" of existing diamond and other mineral resources companies. With a seasoned management team, high technology exploration methods that can better profile diamondiferous kimberlite pipes (both magnetic and non-magnetic), and on-line audit oversight of mining operations, Casavant Mining Kimberlite International is poised to take advantage of a consolidation of junior mining companies without losing focus on its core claims in Saskatchewan.
B. Information regarding a seminar sponsored by Edwards & Angell:
www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=75111
CMKX: Edwards & Angell were sponsers at a seminar,and panel discussion participants, that told businesses how they should consolidate. The article is from 2/26/99, but it is interesting and E & A seems to have some years of experience doing roll-ups.
PS My thanks to Daulphin, Sugarpaw and prospector777 for providing some very interesting and informative links.
By: bill19336
***How does a roll up fit into the picture?
+++++++++++++++++++++++++++++++++++++++
First, let's establish what a roll up is. The definition from Investopedia states the following: In the context of venture capital, when a VC forces small companies to merge in order to reduce costs. If you see Urban as a venture capitalist it's easy to see the perfect fit with everything he has done to date.
Second, let's establish the basic goal of a roll up. The easiest way to understand it, at least for me, is to envision a series of small, scattered and inefficient Mom and Pop grocery stores. Apply economies of scale to the equation and you can see the advantages of transforming those scattered stores into a chain of supertstores (this is the basic business model Walmart applies to retail and Home Depot applies to hardware). Just transfer the example to mining and you've got Urban's master plan. He saves money by centralizing and efficientizing every step of the process, that is, taking minerals from the ground to the store shelf and squeezing costs every step of the way.
So how do roll-ups fit into CMKX's future? First, they lie well within the boundaries of the business model I have speculated that Urban is following. Thus far Urban has steadfastly adhered to the model and I expect him to continue. Additionally, roll ups were specifically mentioned in the Dec. 4, 2002 PR (see A. below). Finally, Edawards and Angell have sponsored seminars regarding roll ups and is quite familiar with the process (see B. below).
So what does it mean? In my opinion, ("CMKX") is destined to become an exploration company with a financial arm and a "turn-key" project management arm. UCAD will provide the operating management, and Urban will provide the other services (i.e., legal, marketing, distribution, etc.) that will complete a fully integrated marketing system. In other words, Urban will take diamonds and other minerals from the ground directly to the consumer. Additionally, the financial arm will use Urban's large shareholder base as leverage in the acquisition, management and sale of assets.
At this point, I'm not sure which company will take the lead (i.e., CIM, UCAD, CMKX, etc.) but the economies of scale and synergy inherent in this combination make it a foregone conclusion. While the exact structure remains a bit nebulous, the inevitable march toward that goal is undeniably relentless. The future will be very bright for those with the foresight to see beyond the tip of their nose.
Good Luck and it's all speculation
Notes:
A From the Dec. 4, 2002 PR:
www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=75107
This is the first in many targeted acquisitions and ""roll-ups"" of existing diamond and other mineral resources companies. With a seasoned management team, high technology exploration methods that can better profile diamondiferous kimberlite pipes (both magnetic and non-magnetic), and on-line audit oversight of mining operations, Casavant Mining Kimberlite International is poised to take advantage of a consolidation of junior mining companies without losing focus on its core claims in Saskatchewan.
B. Information regarding a seminar sponsored by Edwards & Angell:
www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=75111
CMKX: Edwards & Angell were sponsers at a seminar,and panel discussion participants, that told businesses how they should consolidate. The article is from 2/26/99, but it is interesting and E & A seems to have some years of experience doing roll-ups.
PS My thanks to Daulphin, Sugarpaw and prospector777 for providing some very interesting and informative links.
