GREY:CSOSF - Post by User
Post by
DTM5on Mar 29, 2011 12:53pm
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Post# 18355932
The other side of the coin
The other side of the coinI'm a believer that this stock should be worth 1.50+, but as I mentioned in a previous post I do have some criticisms and don't want to be labeled a pumper; so here it goes:
1. Although I'm not happy management was waayyyy too slow to react to the economic downturn and the company almost went bust, it did allow me to build a position at a very low cost. So I'm happy they really screwed it up, but I'm hopeful they've learned their lesson and will be far more responsible with shareholders money and not continue to spend it like lunatics.
2. Speaking of management, senior management must stop the 'back door' withdrawals from the company (Mr. Barker). It looks bad if you are cutting salaries, closing branches, and then paying yourself out the back door in addition to already competitive salaries. Its there in the financial statements if anyone wants to see.
3. And speaking of disclosure, why is there no analyst covering the stock? Its a 100m sales company that services the dynamic western Canadian oil & Gas & infrastructure sector. Come on guys, no wonder the stock only trades 500 shares per day! And where and when are the annual meetings and why are they not clearly announced and conference called? They should at least have an investor relations manager at the company.
4. I question whether the directors of the company add any value of are comeptant enough to look after shareholder's interests. It would be nice to see a board which was deep an experienced in the energy / distrubution sector with real world experience. Not just the odd accountant or lawyer getting free options. lets be honest, if the board was independent and the bulb was on, existing management would be toast. Oppps. I forgot, they own about 30% of the company. Enough to stack the board with cronies who are asleep at the switch!
Ok, it sounds nasty but I suppose in the realm of public companies this stuff is pretty standard. Still it's worth mentioning.