Vette – Your reminder of David McDonald’s purchases is very illuminating.Your record starts on Dec 23, 2009 with a purchase of 105,000 shares at $0.14. At that time he already had 2,199,500 shares. I do not know what he paid for those shares, but if I assume it was $0.14, then that would be his average cost up to that time.

Since then, he has accumulated to the point where he has 12,642,000 shares. His highest purchase price was $2.64 for 300 shares on April 11, 2011. The important point, however, is not his top price. I think his average price is more important. Assuming the first 2,199,500 shares cost $0.14, McDonald’s total investment is about $4.451 million at an average price of $0.35 per share. If David McDonald was the recent insider who sold 147,200 shares at about $1.11, then he will be claiming a capital gain. At $1.11, he has tripled his average price.

One concern I have with Copper Fox is our dependence upon the major shareholders (Ernesto and David) to bargain for full value. What incentive do they have to seek top value when their average price is so low? If economic conditions continue to deteriorate, any purchaser will likely offer a low ball figure. And, like the latest inside trader, a low price may be acceptable. Minor shareholders like myself may be pressured to go along with a low bid that is acceptable to the two majority shareholders.

I would be interested in a discussion re why we should or should not expect full value.