GREY:MBLKF - Post by User
Post by
savinfamilyon May 12, 2011 6:29pm
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Post# 18569121
When the blood is leaking
When the blood is leakingRemember : you should always buy when the blood is leaking.
I assisted to the shareholders' meeting this morning and came to the conclusion that MegaBrands is more appealing than ever. Let us not forget the company is virtually debt-free. Take a look at the last quarter's results: MegaBrands is more solvable and sutainable than ever. You should also consider that some major exclusive licenses aren't active yet.
Q1 2011 is the 6th consecutive quarter with growing sales.
During this meeting, the only criticism came from Michel Nadeau who is a very competent financier and analyst. While the sensationalist media will put a negative spin on its comments (deeming MB as one of the worst examples of corporative attitude), a few facts deserve to be taken into account:
1 - Michel Nadeau agreed the results were good
2 - Michel Nadeau admitted he has continued buying shares even in 2010.
3 - He also admitted the bonuses granted to the Bernard brothers are in options and not in cash (the company didn't become poorer granting those bonuses, but enriched itself with more motivated managers. No money has been taken out of the company's cashflow)
4 - His exact words were : "The Bertrand brothers didn't have the right to grant themselves such an important future gain, after the shareholders lost half a billion dollars in '07-'08. Imagine how much they'll make with these options when the stock will be traded at $3-$4." I was at 2 meters from him when he said that.
In my opinion, it's this last sentence that we should retain.
I can't forget Michel Nadeau leaving the place, with 2 MegaBrands toy samples in his hands (a Hello Kitty and a Need for Speed), happy as a child seeing his dreams come true.