Eagle Energy Inc T.EGL.UN

RE:RE:RE:Shocking!

[yieldguy]

Current management is using this as a fear tactic.  
Kingsway can either get a new loan, sell assets or both.

The current management is self-serving as I described before.
Here are the reasons why they are in it more for themselves than shareholders:

 "Eagle Management Is Self-serving.....In My Opinion!
And, is NOT making decisions in the best interests of shareholders!

 

After spending several days investigating what Eagle's management decisions have been
over the the past few years, I have come to the conclusion that many of their decisions have been self-serving and NOT in the best interests of shareholders. 
Let me explain.

 

For example, not only has management increased company debt to unsustainable levels, they have also increased G&A expenses (including salaries) to levels 3X that of the average of their peers! And, all of this in an environment that has been difficult for oil and gas companies and the industry in general. When asked if they would be willing to reduce their salaries to share in the sacrifice (shareholders' dividends were wiped out),
their reply was......”well be will not be getting any bonuses”. 
OUTRAGEOUS!!!

 

As if this wasn't enough, I now have discovered something else. 
Eagle's management has also given themselves approx. 4.3% of the companies shares!

 

Here is what I discovered: 
The total number of Restricted Share Units (RSUs - which are free shares with no performance requirements) are shown in their financial statements. On their Q1 2017 Financials there is a table on page 13 that says "The following schedule shows the continuity of equity settled RSUs issued". You can see the balance at January 1, 2016 was zero (it was a new plan put in place in early 2016). They issued 1,834,750 RSUs in 2016 plus 100,135 were issued in lieu of dividends (yes, they get the dividends on the free shares before they vest). In the first quarter of 2017, some of the RSUs vested, and they issued another 256,220. At quarter end there were 1,849,180 RSUs outstanding (1,849,180 is about 4.3% of the issued and outstanding shares - board and management has the vast majority). This means they granted themselves 4.3% of the company as part of their compensation. This doesn't include the 725,441 Performance Share Units in the other table at the bottom of the same page.

 

So, Eagles' management has no problem completely cutting out the dividend to shareholders. YET, AT THE SAME TIME, they keep their G&A expenses including their salaries 3X higher than the average of their peers! AND, grant themselves 4.3% of the company as part of their compensation! OUTRAGEOUS!!!

 

Hey, folks......it is PAST time for a change in management!!!
In my opinion, Eagle's current management team should be replaced ASAP!!!
In my opinion, they are NOT working in the best interests of shareholders, but for themselves!!!