Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Discussion of the Gold portion of the Permanent Portfolio

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dualstow
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dualstow » Fri Sep 18, 2015 12:03 pm

Ha. See my edit above in red. Save you some time.
At least the recyclers will make some money this year.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dragoncar » Fri Sep 18, 2015 12:14 pm

I haven't gotten anything in paper.. Just electronic.. You guys should sign up for that
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by l82start » Fri Sep 18, 2015 12:19 pm

dragoncar wrote: I haven't gotten anything in paper.. Just electronic.. You guys should sign up for that
i am all electronic through vanguard, but this seems to all be taking place outside that system between Sprott and GTU, neither of whom i have any accounts with, as far as i know i am just a name on a mailing list to both...
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by AdamA » Fri Sep 18, 2015 12:39 pm

l82start wrote: based on some back of a napkin calculations, i think Sprott has already blown/spent any profits on the deal just covering the cost of paper and postage from sending information pamphlets and solicitations for support..
Lol...so true. 

My mailbox is tiny, and they have to cram them in.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dualstow » Fri Sep 18, 2015 1:10 pm

dragoncar wrote: I haven't gotten anything in paper.. Just electronic.. You guys should sign up for that
I get most everything electronically. Sometimes when I buy a new individual stock, I have to remember to sign up for electronic voting and annual reports. I have to say I'm looking forward to the McCormick spice one in paper because according to Josh McKennon the paper is full of fragrant spices, mmm.
I only get year-end statements from Vanguard in paper form, but these offers still come on paper. The rep on the phone didn't mention an electronic version even when I asked about stopping all the paper offers. I'll look into it, though.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by AdamA » Wed Sep 23, 2015 9:18 am

http://money.cnn.com/news/newsfeeds/art ... 218921.htm
Central GoldTrust ("GoldTrust") (TSX:GTU.UN) (C$) (TSX:GTU.U) (US$) (NYSE MKT:GTU) (US$) today noted that Sprott Asset Management LP and Sprott Physical Gold Trust (collectively, "Sprott") have failed by a substantial margin to achieve sufficient support from GoldTrust Unitholders to complete their offer. As a result, Sprott has yet again extended their inadequate, hostile offer to acquire all of the outstanding Units of GoldTrust. They have made no improvement to the terms of their offer, which is now set to expire on October 9, 2015.
Can they just extend the offer indefinitely?

Can't wait to get more mail!
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by Pointedstick » Wed Sep 23, 2015 9:48 am

AdamA wrote: http://money.cnn.com/news/newsfeeds/art ... 218921.htm
Central GoldTrust ("GoldTrust") (TSX:GTU.UN) (C$) (TSX:GTU.U) (US$) (NYSE MKT:GTU) (US$) today noted that Sprott Asset Management LP and Sprott Physical Gold Trust (collectively, "Sprott") have failed by a substantial margin to achieve sufficient support from GoldTrust Unitholders to complete their offer. As a result, Sprott has yet again extended their inadequate, hostile offer to acquire all of the outstanding Units of GoldTrust. They have made no improvement to the terms of their offer, which is now set to expire on October 9, 2015.
Can they just extend the offer indefinitely?

Can't wait to get more mail!
What a bunch of dopes. Do they think continuously and repeatedly irritating people is going to convince them to accept a deal they don't like?
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by technovelist » Wed Sep 23, 2015 11:35 am

Pointedstick wrote:
AdamA wrote: http://money.cnn.com/news/newsfeeds/art ... 218921.htm
Central GoldTrust ("GoldTrust") (TSX:GTU.UN) (C$) (TSX:GTU.U) (US$) (NYSE MKT:GTU) (US$) today noted that Sprott Asset Management LP and Sprott Physical Gold Trust (collectively, "Sprott") have failed by a substantial margin to achieve sufficient support from GoldTrust Unitholders to complete their offer. As a result, Sprott has yet again extended their inadequate, hostile offer to acquire all of the outstanding Units of GoldTrust. They have made no improvement to the terms of their offer, which is now set to expire on October 9, 2015.
Can they just extend the offer indefinitely?

Can't wait to get more mail!
What a bunch of dopes. Do they think continuously and repeatedly irritating people is going to convince them to accept a deal they don't like?
Well, if they can convince people that they have to choose between two ways of giving up their units, maybe. Apparently some brokers have been lying to their customers to that effect.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by MachineGhost » Tue Sep 29, 2015 4:44 pm

Sprott co-founded GTU and left, but GTU's corrupt management is treating the trust as a personal piggybank at shareholder's expense.  The persistent discount to NAV is a result.  It reflects illiquidity and the lack of action on part of management to use their ill-gotten gains to buy back shares to close the gap.  THEY SIMPLE DON'T CARE.

Now, I understand ya'll arbitrating the NAV here so you want it to persist but so long as GTU management has their hands in the cookie jar, it will require extremely overbullish gold sentiment to swing back to fair value or a premium.

So if you don't know who the dope in the room is...
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by technovelist » Wed Sep 30, 2015 2:53 am

MachineGhost wrote: Sprott co-founded GTU and left, but GTU's corrupt management is treating the trust as a personal piggybank at shareholder's expense.  The persistent discount to NAV is a result.  It reflects illiquidity and the lack of action on part of management to use their ill-gotten gains to buy back shares to close the gap.  THEY SIMPLE DON'T CARE.

Now, I understand ya'll arbitrating the NAV here so you want it to persist but so long as GTU management has their hands in the cookie jar, it will require extremely overbullish gold sentiment to swing back to fair value or a premium.

So if you don't know who the dope in the room is...
Well, let's see.

1. GTU has a lower expense ratio than PHYS.
2. One of the big supporters of the takeover had a bunch of PHYS shares but sold them and then bought GTU. If they like the PHYS redemption policy better than the GTU redemption policy, why not just keep the PHYS?
3. GTU's management has already proposed to limit the discount to 5% by allowing unitholders to tender units back to GTU at that discount, but Sprott is blocking that proposal.
4. Sprott has asked GTU unitholders to give them irrevocable proxies. Why do they need proxies that don't expire with their offer?
5. The Sprott redemption option isn't available for anyone who has less than a standard bar (400 oz.)
6. PHYS has no shareholder meetings or any way for minority shareholders to do anything about governance of PHYS.
7. PHYS has sold at a pretty big discount at times too.

To summarize, it doesn't look to me as though GTU's management is doing that bad a job, and I don't like Sprott's tactics.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by MachineGhost » Wed Sep 30, 2015 10:28 pm

technovelist wrote: 2. One of the big supporters of the takeover had a bunch of PHYS shares but sold them and then bought GTU. If they like the PHYS redemption policy better than the GTU redemption policy, why not just keep the PHYS?
Free money.  If the takeover doesn't go through he can just sell GTU and rebuy PHYS.

I can't speak to the other issues.  But no one is locked into holding either GTU or PHYS shares if they don't like management.  Sprott believes they have better infrastructure and pricing transparency in PHYS and without the thorny tax issues as well.

If you're in favor of the wide discount in GTU persisting so you can arbitrage, then vote no.  But just remember, management of both are getting rich off shareholders.  It's just more egregarious in GTU's case since they're crony.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by Reub » Wed Oct 14, 2015 8:09 pm

I just received an offer in the mail from my brokerage firm asking if I want to exchange my shares of GTU for PHYS at a price yet to be determined.  Did their takeover succeed? If so, what does this mean for GTU holders?
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