We are owners of Cline Mining Corp., not just inve
Cline's management works for us, and it is about time they realized this fact.
I agree that the lack of clarity is unacceptable, however, without applying sufficient pressure on management then the status quo will prevail.
As recently as yesterday Ralph Nader, consumer activist in the US, made public the letter below addressed to John Chambers of Cisco Systems. Albeit a distinctly different set of circumstances, the primary principle remains the same, that management works for shareholders.
I would like to take this opportunity to apologize for posting Ken Bate's email incorrectly as ken.bates@clinemining.com, however, it was jennifer.bates@clinemining.com who forwarded me the afore mention address incorrectly, and it is no wonder I have yet to receive a response. Sorry!
Monday, June 27. 2011
John T. Chambers, CEO
Cisco Corporation
170 West Tasman Drive
San Jose, California, 95134-1706
Dear Mr. Chambers:
Cisco share valuation may not be one of your priorities but your owners
A little history is instructive. In March 2000 Cisco stock soared above$80 per share. There have been no splits since that time. In theintervening eleven years, Cisco has become a much larger companymeasured by sales, profits and cash reserves. Cisco has acquirednumerous companies in this interval and expanded well beyond its corebusiness. Each year, sales have increased along with profits. Yet theshare price is nearer to $15 following a decline in the past few weeksfrom a range of $24 per share. Appalling!
Moreover, Cisco has very little debt and is still dominant in its core business, though confronting aggressive competition.
As a shareholder, I urge you to do something to enhance the value ofCisco shares. The long-delayed and paltry annual dividend of 24 centsper share is hardly adequate. Here is what your Board of Directorsshould approve to begin the process of restoring confidence in yourremaining shareholders in the company: Cisco hoards $43+ billions ofdollars in cash. There are about 5.55 billion shares outstanding.Increase the annual dividend to 50 cents and pay out a one-time specialdividend of $1 per share. Such a decision will help increase consumerdemand in our sorrowful economy since there would be a higher propensityof that money being spent than remaining inert in Cisco's coffersperhaps tempting another misadventurous acquisition.
It is time for a long overdue Cisco shareholder revolt against amanagement that is oblivious to building or even maintaining shareholdervalue. It is as if management is in a counter-intuitive, bizarre,defacto conflict of interest against its own company investments andthose held by their institutional and individual shareholders.
It is hardly necessary to relate that many shareholders want somereturns, after these many years, and not another stock buyback. Theywant cash from the reserve their company sits on year after year. Theymay be ready to organize, judging by the ones with whom I have spokenand by some comments made privately and publically to the press.
Please respond to my suggestion of a 50 cents dividend and a one-timepayout of a special $1 dividend. Non-financial corporations are sittingon nearly $2 trillion in largely inert money. Our economy hassubstantial unused capacity and lower recessionary demand. Domesticinvestment is not exactly booming. What is needed is an increase inconsumer demand. These companies need to increase their dividends notjust to provide shareholder value, but also, as a side benefit, toenhance spending power by the recipients in the marketplace.
If you believe it is easier for you to decide on a larger dividendpolicy following a demand of thousands of shareholders and some largeinstitutional holders like Fidelity and Vanguard and the worker pensionfunds, please let that be known. I'll be making this letter publicshortly.
Sincerely yours,
Ralph Nader