RE:Micromanagement by shareholders? Will it help?...Management is the reason no one wants to own this stock!! You are searching for explanations when the answer is right in front of you. Would you accept even a free ticket on the most luxurious cruise ship if you knew the captain was innebriated and was on his maiden voyage? Probably not. No matter how great the asset - if management is terrible - not worth the risk!
We have seen Dev try to convert a home run to a single - what invester would accept that??? And he says it like FCU investors are being greedy??? Are you serious - we should just stand by while you destroy hundreds of millions of dollars of sharholder equity? There really is something off about Dev. He needs to step down or be removed. Period!
quakes99 wrote: Can it ever work? Has it ever worked before? What are other companies doing? Is it working for them?
In most businesses, there are a series of steps involved in deciding if change is needed and what kind of changes might be implemented. The process involves a review of how well things have worked so far, what hasn't been working, and how best to address those failings. Reinventing the wheel is always wasted effort so most businesses look to other businesses to see how they are dealing with those same issues and how effective their implemented changes have been.
It's not a process based on emotions and perceptions... it's one based on analysis of business efficiencies, weaknesses, and areas of critical importance with respect to achieving the corporate goals set by the Board of Directors and affirmed by voting shareholders at an annual meeting.
The process also involves coming to understand what is the bottom line and how to achieve it.
What is the ultimate goal of Fission Uranium Corp with respect to its own shareholders?
In my view, from what our Management has said and published in their MD&A, the ultimate goal is to increase the asset value of the U3O8 deposits that have been discovered, thus raising the Net Asset Value and Enterprise Value of the company, and increasing the company's share price and Market Capitalization so as to generate the highest possible profit to shareholders. Further, by monetizing those assets at some future date those profits can be increased even more as they are marketed to potential acquirers interested in buying the company and its assets.
Fission is not an income earning, dividend paying company... its raison d'etre is to increase shareholder profits through raising funds and using them to increase asset value, attract new investors, and eventually sell the company for a profit.
So, first step, how has the company been performing so far?
Since inception, Fission(FCU) has raised $76M through 4 separate equity financings, and used those funds to run the company, carry out 6 seasonal drill programs yielding over 400 drill holes, and commission an NI 43-101 Maiden Resource Estimate and an NI 43-101 Preliminary Economic Assessment showing a Net Present Value after-taxes of $1.02 Billion. From a NAV perspective, that is a 1200% return on investment, an amazing and incredibly efficient use of those $76M raised. No other Uranium explorer in the world can claim that kind of effectiveness at raising and deploying funds to increase their NAV, imho.
Clearly, there is success in achieving the primary corporate goals!
BUT, where Fission has shown weakness is at marketing itself to new investors, as they are the ones who affect the share price by buying up the company shares on the TSX and creating a supply/demand imbalance that pushes up the share price. If you poorly market the company then no one buys your shares and though you have the greatest asset in the world, the share price goes nowhere. Similarly, if all you do is go out and hug existing shareholders to make them feel good, then your share price goes nowhere. It may stop it from going down, but does nothing to attract new investors that are needed to push the share price up.
Fission has tried to address the marketing weakness in several ways... moving the company from the Venture to the more respectable TSX was one, thus making the shares available to Funds and Institutions that weren't able to buy before. But that has failed to deliver, as interest in the U sector has waned as an expected rise in U prices has failed to materialize and those fund managers continued to sit on the sidelines. Fission went in search of buyers and investors in Europe, Asia and NYC but still no luck at bringing in enough new investors to drive up the share price, or find an acquirer with deep pockets willing to offer fair value. Buyers just aren't interested at this low point in Uranium sentiment and U commodity prices. Too much risk. Even a record-breaking Maiden Resource Estimate couldn't get them lining up at the door to buy.
So, as we were told, with no success at bringing in investors and buyers, Fission tried to address the unresponsive share price problem by proposing to merge with another company in order to create a more attractive mid-tier company that would entice more new investors and large institutional and mutual fund Portfolio Managers and drive the share price higher, faster, when sentiment turns positive in the Uranium sector. But, retail shareholders were not supportive so the company failed to achieve the 2/3rds approval it needed. Whether or not that was the right decision will never be known... but it's where we are and we have to work with it.
So, in a nutshell, when it comes to running the 100m dash, Fission has been winning every race in raising funds, discovering and proving up assets that have driven up the company's NAV faster and more effectively than other racer on the course. Gold medals abound!
But, when it comes to running the marathon, they have failed to cross the finish line first. They've continued to lag behind other runners and their recent attempt at sprinting was rejected by their fans and supporters, who are now booing from the sidelines.
And what do those fans and supporters suggest? A heart transplant? Or overseeing every aspect of the runner's training program to ensure that every second is spent on effective training for the lowest possible cost? Shareholder micromanagement to the nth degree?
Doesn't that seem a bit extreme for a runner who is great at winning race after race when it comes to growing the company's asset value? Isn't the problem all about marketing and selling the company's virtues to new investors and potential buyers? Isn't that where the real weakness is being shown?
It's certainly not a problem unique to Fission. EVERY Uranium exploration company has been under pressure and having difficulty growing shareholder value in a depressed Uranium market. Add to that the impact of swing traders and other manipulation of the share price in the market place and an even steeper uphill battle needs to be won. The company needs some tailwinds to get the share price moving!
So, the challenge to you is to find another company that has been more successful in growing its assets and marketing them to attract new investors and potential acquirers, and see what they've done in their business model.
Have they been more transparent? Do they have a CEO Blog to communicate with shareholders? Do they publish a lot of exploration data, maps and videos on their websites too? Have they focused on making existing shareholders feel good or do they mostly ignore their shareholders and focus on marketing the company at trade shows and through one-on-one presentations, meetings, and invitations to on-site visits at their flagship exploration base? Do they tell shareholders their minute-by-minute activities on Facebook? Do they share an Events Calendar? Do they invite shareholders to brainstorming sessions and workshops to get their perspective so as to get beyond "group think"? (I, for one, would love the opportunity to attend a Fission shareholder workshop to share some ideas. :-)
If anything, Fission has been more progressive than the vast majority when it comes to providing valuable drill data, project details, and even a CEO communication blog directed at shareholders. They have more tools than most... but maybe they just don't use them effectively to achieve their goals?
The difficulty, as I see it, is that companies competing in a tight and weak market rely heavily on confidentiality and negotiation away from the public eye. Potential investors and partners don't want it to be known that they are in discussions and entertaining company guests. They are playing a game of Texas Hold-em and are keeping their hole cards hidden from view so as not to tip their hand to competitors around the table. Our player also has to keep our cards hidden, and will it really help to have dozens of shareholders looking over his shoulder, peering at the confidential hole cards, and telling him how to play the game?
You could try to give him a heart transplant... but if the operation succeeds will the patient die?
In my opinion, successful businesses focus on maintaining their strengths to build a solid foundation for the company... keep doing what they do best... while being open to finding ways to overcome their weaknesses in a way that does not threaten that solid foundation.
Obviously, Fission needs to keep on raising the needed funds to further exploration goals, and focus on growing the Asset value of Triple R. It also needs to be more welcoming to shareholder input and provide more transparency and better communication without tipping our company hand to the rest of the players in the sector, imho.
BUT, what it needs most of all is to present to potential new investors the image of a confident and capable company that can deliver shareholder wealth when sentiment in the Uranium sector improves. Potential investors need to feel confident themselves that there is no chaos and confusion surrounding the operations of the company. The share price rises ONLY when new buyers line up to buy more shares than the ones being offered for sale. Potential investors sitting on the sidelines are our top priority, in my opinion. They, not existing shareholders, are the ones with the power to drive up our share price and move us closer to the finish line. We need them to help us achieve our goals.
Just sharing some of my thoughts and musings on a quiet Saturday morning.
Good luck with your brainstorming and new ideas on how to help Fission achieve our common goals and bottom line!
Hope you are having a good weekend... Cheers!