RE:RE:AGM Voting resultsUncleFB, I was at the AGM, it was an underwhelming and uninspiring experience. I didn’t get the sense Enterprise has the executive muscle nor financial backing execute the lofty strategic goals they keep regurgitating. On Enterprise’s website they state; “continues to successfully execute its strong corporate mandate to be the largest specialized equipment rental and services organization, providing critical site infrastructure and services in Western Canada and beyond”. “To accomplish this, Enterprise is implementing a strategy of acquiring and consolidating established, profitable rental services companies with a near term goal of obtaining annual sales revenue of over $150 million.” Read these sentences closely, the first one discusses continued execution of strategy; the second sentence mentions implementing a strategy” (a hint shouldn’t the strategy already be implemented and awaiting execution). Enterprise communications and investor relations team is either careless or confused, likely a bit of both. Now look at the numbers, “obtain annual revenue of $150M”. Wow it is great to have goals and think big. However, to date Enterprise’s best year was 2014 and they didn’t break $80M. Everyone please realize this was pre-divesture of TC Backhoe and Calgary Tunnelling. In 2018 Enterprise will be fortunate to have $25M in revenue. Enterprise states they want to be Western Canada’s leader in specialized rental equipment. Ok what constitutes “specialized” vs “non-specialized” rental equipment, I hope they know because it sure isn’t clear from their communications. Currently Enterprise operates in a small portion of central and north western Alberta and a tiny portion of BC. Again, the objective to be Western Canada’s largest equipment rental organization sounds great, but do they really have a chance? Enterprises promotional press releases and their strategic plans seem to be more fantasy than reality. Maybe the folks at Enterprise should let writers of fantasy and fiction stick with writing Harlequin Romance novels. Perhaps if Enterprise was able to communicate accurate, meaningful and consistent information the stock would be trading at a valuation higher than 50% of book value… there is a good reason for this obscene discount!
Have a great day everyone!