MCX: Mariner Corp - a shell with a future?

[p0ssy]

I have just bought a few million of these at 0.007c.

Blue ribbon management has taken over this shell looking to invest in other companies. Looking for 2-3 cents in few months.

Fingers crossed.

[STRAT]

Hi Possy.
I see the CEO has apparently started his own thread on HC.:ohmy:

[p0ssy]

Just another note on this company - the SP has not gone anywhere but has plenty of company here.

I have topped up again at 0.4c with another 1.2million shares so average cost is now 0.5c. MCX has deferred tax loss of $100mil+ and still trying to get control of Viento.

I am punting on a capital raising sometime in the future in the 1.5c range - that would be a nice 3-4 bagger for me.

next few weeks will be interesting.

[steve fleming]

Just another note on this company - the SP has not gone anywhere but has plenty of company here.

I have topped up again at 0.4c with another 1.2million shares so average cost is now 0.5c. MCX has deferred tax loss of $100mil+ and still trying to get control of Viento.

I am punting on a capital raising sometime in the future in the 1.5c range - that would be a nice 3-4 bagger for me.

next few weeks will be interesting.

Possy, what is going to drive a re-rate here?

Is MCX just going to become VIE? Is there value in a merger?

[Mothman]

Hi Steve and co, also following the Brierley CSE thread and was wondering if you guys knew:

What is the value of a shell company in Australia? I'm talking about no assets just a name and some shareholders should be $0...but I mean it must cost to get listed on ASX etc?

So maybe worth $200k?

[p0ssy]

Hi Steve

have a look at the company update on the website (http://www.marinercorporation.com.au/) dated 28/3/11.

This co was recommended to me via a Perth stockbroker who is impressed by the board and management, who replaced the previous board in November 10.

Their aim is to either to acquire underperforming companies either through takeover of the company or management and unlock the value as they see it. I have no idea why Viento (VIE) has been chosen for their No1 target. The management is purely property focussed with no interest in resources etc. Actually their No1 target was Mariner itself I suspect.

I guess it is a bit of a punt - but at 1/2 cent what isn't!!

[janner]

ALF on NZX. :-))

[steve fleming]

These guys have had a busy few months, doing deals left right and centre.

Read somewhere that they see themselves as a mini GPG (which is a bit ironic as they shafted GPG earlier this year in relation to all their food company purchases)

Anyway, I think they have bitten off more that they can chew with their off - market takeover for Austock (ACK)

[steve fleming]

MCX's market cap is now under $1m, after its major investment BEC went into receivership.

Made the classic mistake of these investment companies that take ''strategic positions" in small/micro caps, of focusing on cheap assets rather than quality assets. The turn-around inevitably never comes.

TCP was the classic - during the 2000's bull market, just about everyone of its major micro-cap investments ended up worthless (Signature brands. Gowing bros, Cheviott Bridge from memory)

Merrick Special Ops Fund is another more recent example of a failed small-cap investor.

[Stranger_Danger]

Yeah, small caps can be incredibly rewarding, but are hard to get right.

I'm not sure "strategic positions" are the way to play them. Personally, I try to never own more than 1-2% of a small cap. Anything past that and you're running into major problems exiting easily.

I've been following MCX with interest after they tried to take over WIG which I'd started purchasing.

Have never bought any though - the BEC stake was a death wish, and not just in hindsight.

[steve fleming]

The head of MCX has recently popped up as the new exec director of the old Lemarne Corp (LMC) - now a listed cash box.

Wants to "begin to make investments in a number of small companies"....another disaster looming....

Meanwhile MCX has been forced to reinvent itself as a property developer in an attempt to extract something from the BEC debacle.

[steve fleming]

And just on this theme, NCC is one who seems to be a reasonably savvy small cap investor - just gone substantial in CIX. But probably not as activist as what MCX was trying to do.

And of course Alex Waislitz's cash box WWM will be an interesting one to watch.

[Corporate]

Talking of cash boxes. I'm watching EXE with interest

[mark100]

And just on this theme, NCC is one who seems to be a reasonably savvy small cap investor - just gone substantial in CIX. But probably not as activist as what MCX was trying to do.

And of course Alex Waislitz's cash box WWM will be an interesting one to watch.

stevefleming, NCCO the way to go if you like NCC. $1 strike price, Feb 15 expiry. NCC pre tax and post tax NTA as at 31 Aug was $1.25 and $1.19 respectively (up from $1 in Feb). Note they are currently cum a 2.5c div. If a they keep up their relative market performance they could easily trade at a premium to NTA in the future.

Obviously I hold NCCO...

[steve fleming]

The head of MCX has recently popped up as the new exec director of the old Lemarne Corp (LMC) - now a listed cash box.

Wants to "begin to make investments in a number of small companies"....another disaster looming....

Meanwhile MCX has been forced to reinvent itself as a property developer in an attempt to extract something from the BEC debacle.

Oh no…that didn’t take long

"Mariner Corporation Limited ("Mariner") (ASX: MCX) has raised $400,000 by issuing a convertible note to Lemarne Corporation Limited ("Lemarne") (ASX: LMC)."

So one failed small cap investor (MCX) borrowing from another wannabe small cap investor (LMC) that is likely to fail just as badly….and borrowing so they can afford to pay for a 5% deposit on a distressed loan, of all things.

I don’t know why ever would any sane (LMC) director want to get mixed up in this.

In terms of the integrity of the market, such a bad look.