Is CKX Lands, Inc. Gearing Up For An Acquisition?
|August 21, 2013||Posted by Nat Stewart under Compounding Machines||
In my “Open Letter To CKX Lands, Inc. Management And Board Of Directors” I suggested that it was time for CKX Lands, Inc. to either deploy the cash sitting idle on its balance sheet, or to return it to investors. I also suggested that if the right investment opportunity is discovered, CKX Lands should use a conservative amount of leverage in order to magnify the opportunity.
In light of the above, I noted a slight change in the text of a key area in last quarters quarterly report. For quite some time, CKX Lands, Inc. has been stating something like this:
“Management believes existing cash and investments together with funds generated from operations should be sufficient to meet operating requirements and provide funds for strategic acquisitions”
(March 31, 2013 report)
However, the June 30, 2013 report adds something new at the end:
“Management believes available cash and investments together with funds generated from operations should be sufficient to meet operating requirements and provide funds for strategic acquisitions. Additional sources of liquidity include an available bank line of credit which the Company increased from $1,000,000 to $5,000,000 during the quarter ended June 30, 2013.”
Could the increase in the bank credit line mean that CKX Lands, Inc. is gearing up for an acquisition? I certainly hope so. While Patience for the right opportunity is the critical to good investing, aggressiveness is what sets the ball in motion and wins the game. I look forward to tracking developments as the occur.
I own shares in CKX Lands, Inc.