Commentary

Great developments

We have applied for court transcripts for the October 14th stay of cost hearing. While I would love to repeat what was said in court it would be better to hear it absolutely accurately quoted from the transcripts. We should have them soon.

Check back in a week.

 

 


Brookfield - Vampire Squid Species?

 

"Lasting a month, Rouse’s rights offering never reached the $15 level but instead of the embarrassment of a failed deal—less than 15 percent of Rouse’s non-Brookfield shareholders participated in the offering—Rouse got its money. That’s because Brookfield “backstopped” (or guaranteed) the completion of the deal—for a $6 million fee. After the deal was done in March 2012, Brookfield owned an additional 11.35 million shares, taking its stake in Rouse from 37 percent to 54 percent, giving it effective control over the company. Of note, Brookfield was able to do this without paying a control premium to Rouse’s investors.

Shortly after the rights offering was closed, Brookfield and Rouse engaged in a series of transactions that seem to show how Brookfield obtained a large block of Rouse shares by spending only $13.7 million."

From: A Rousing Relationship  By Roddy Boyd, March 11, 2013

See also: http://sirf-online.org/

(No comment on the actions of Rouse.)

Well, where have we experienced this before? 

Stelco, Ainsworth Lumber, The Atlantis Resort, Fraser Paper . . . 

Vampire Squid Species?

Read Matt Tiabbi's Rolling Stone article in which he describes Goldman Sach's as “great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”

What do you think? Is Brookfield the Canadian vampire squid cousin of Goldman Sach's?

 

 

 

 


Thank You to a shareholder - contributor

Yes. We are still here and going strong. One might not think there is much work keeping a class action lawsuit going and moving forward, but there is. We do it because it needs to be done. We do it for the shareholders.You keep us going.

One shareholder, in particular, who frequently contributes financially and with research/work, just sent us another check to help with the expenses of the lawsuit. In a note accompanying the check was written:

"Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time." Thomas Edison

Well said and conveyed. Thank you for your support!


Open letter to Southern Investigative Reporting Foundation

Dear SIRF,

Thank you for your article, "The Paper World of Brookfield Asset Management.

As you stated, "Few companies bear a structure as complex as Brookfield’s: Analyzing the company’s organizational tree and its web of entities, stakes, partnerships and operating companies is to behold the work of gifted accountants and lawyers. Similarly, Brookfield’s financial filings are mind-boggling in their complexity." (highlight added).

While important to investors, there is more than just the numbers to consider, as in this article, "A perfect predator."

What may be good for BAM shareholders may not be so good for the shareholders on the other side of their transactions. Perhaps we will see more from you in regards to the what Brookfield leaves in the wake of their progress.

Shareholders for Justice


Teamwork

If anyone has the time and resources and wants to help research and gather evidence to help the lawsuit here are areas of interest we are currently working on:

Hammerstone Corp. Acquires Voting Rights on Whitemud Resources Debentures

Brookfield Special Situations Partners Ltd. Acquires 891,843 Common Shares of Insignia Energy

Brookfield/Timerlands/Pattison/Canfor/Western Forest Products

General Growth Properties

Atlantis Resort

What is helpful?

Just think Who, What, When, Where, Why, How. For instance:

Who are the main players, who are the decision makers?

What is at stake, what are the assets, value?

When did it start, when did it change?

Where are the players, assets, money located?

Why did events, contracts, connections, deals happen? Why did it change?

How did it happen – the sequence of events? How are they related? How much money?

When in doubt – follow the money!

If you are considering investing your time, energy, and resources to help shareholders, contact us through birchmountain@hushmail.com to discuss the areas of interest and where to submit your findings. Please DO NOT send evidence to that email.


2 Deaths in 9 Months at the Hammerstone Quarry

Our sincerest condolences

to the families.

 

Do the deaths call into question the ability of Brookfield to effectively manage a limestone quarry safely?  http://www.hammerstonecorp.com/our-commitment/health-safety

December 2012: "A 32-year-old man was killed in a workplace accident at a limestone quarry 75 kilometers north of Fort McMurray, the second fatality to occur at the location in nine months." Source: http://www.fortmcmurraytoday.com/2012/12/10/man-killed-in-quarry-accident

April 2012:  “A 29-year-old man has been killed while working at a gravel quarry north of Fort McMurray, Alberta. ‘We are not providing any details in terms of the accident, but I can confirm that it did happen at our Hammerstone site,’ said Terry Owens, president of Hammerstone Corporation.” Source: http://www.journalofcommerce.com/article/id49969/--worker-killed-at-gravel-quarry-north-of-fort-mcmurray-alberta

Terry Owen is the CEO of Hammerstone.  According to the Norton Rose web site (formerly MacLeod Dixon), Terry Owen is a lawyer who practiced corporate and securities law.  Does Brookfield recognize this as adequate qualifications to run a quarry? Just how did Mr. Owen get the top job at Hammerstone? 

Background:  "Terry began his career with Macleod Dixon in 1985 and became a partner of the firm in 1993. While at the firm, Terry practised corporate and securities law.  He joined Hammerstone in 2009 as chairman, president and chief executive officer.   Hammerstone was formed to purchase an active limestone mining operation in the Athabasca oil sands area of Alberta with over 1 billion tonnes of limestone reserves. Future plans include expanded quarry operations together with lime production facilities." Source:http://www.nortonrose.com/people/58512/Terry-Owen

Brookfield, through its subsidiary Tricap, “acquired” (through receivership) Birch Mountain’s quarry assets valued at $1.6B for an outlay of less than $50M…tragically leaving Birch stakeholders with nothing. 

Before Hammerstone, Mr. Owen was the President of Trimac Transportation Services Inc., the leading provider of bulk trucking and logistics services in North America. Source: http://www.brookfield.com/content/2009_press_releases/tricap_announces_launch_of_hammerstone_corporation-28695.html

Coincidentally, Trimac  was awarded a contract to haul a “significant volume of limestone aggregate on behalf of Hammerstone Corporation.”  Source: http://www.prnewswire.com/news-releases/trimac-announces-new-business-award-with-hammerstone-corporation-155976835.html

What can we garner from this information? Just what sort of expertise does Brookfield have other than a plethora of securities and receivership lawyers to run the assets they are gobbling up? Just how does a securities lawyer get the top job at Hammerstone?

 

 


BHMNF trading on the PinkOTC

We just want to clarify that any shares purchased OUTSIDE of the class period (1 April 2005 through 5 November 2008) are not eligible to be included in any recovery as a part of the class action lawsuit should there be one.

Why and how the BHMNF shares are trading is a mystery considering BHMNF is a shell company. Perhaps the market makers need some lunch money so they are trading between themselves. Money only makes a profit when it is moving.

Here are a list of the market makers for BHMNF as per Issuer Services from the PinkOTC as of February 2010.

Name

Location

 

Natixis Bleichroeder, Inc

New York, NY

 

Automated Trading Desk Fincl Svcs

Mt. Pleasant, SC

 

Domestic Securities, Inc.

Edison, NJ

 

E*Trade Capital Markets, LLC

Chicago, IL

 

Hudson Securities, Inc

OTC Trading - Jersey City , NJ

 

LaBranche Financial Services, Inc.

Trading Dept. NY

 

Maxim Group LLC

Red Bank, NJ

 

Knight Equity Markets, LP

Jersey City, NJ

 


Creeping Control

What is creeping control and what does it look like?

One example can be found in Ackman's presentation about General Growth Properties outlining how Brookfield is gaining control over GGP. Here's a link to the presentation (copy and paste if necessary)

http://www.businessinsider.com/ackmans-value-investing-congress-presentation-2012-10?op=1

Or could other examples be found in Brookfield's global presence maps? (be sure to look through all the tabs):

http://www.brookfield.com/content/property-30182.html

Or maybe it looks like this:

"Berkshire’s HomeServices of America Inc. unit will be the majority owner of the venture to manage a U.S. residential real- estate affiliate network, according to a statement on the new company’s website." source: http://www.businessweek.com/news/2012-10-31/berkshire-extends-housing-bet-with-brookfield-venture

Majority owner - for now? !!! Ya think old man Buffet is on his game or about to lose it?