RE:5 day losing streakDear CaptainConn,
Did you hear any rumours about SJ being acquired or the BoD actually pursuing some steps in strategic review?
I would have thought that if there was any appetite to privatize the company, SJ would have been taken out several years ago, before the founding families sold off their large stake (it would have been a lot easier to get the necessary number of votes that way and also be more elegant exit strategy rather than selling below market price to the banks). If they could not find a suitor then, I doubt there would a be an interested suitor now.
For a more meaningful price recovery, we need the new CEO to clarify his long term vision and also execute on some larger accretive acquisition to prove his ability. He has worked at the company for many years, so there are no valid excuses for him not doing anything more meaningful. He should know the company, market place, and have lots of deal making experience to be able to start creating shareholder value from day one.
I wrote to the new CEO a few emails asking about his long term vision, but I did not get a clear response. The management needs to come up with a strong and plausible long-term growth strategy and show the ability to take steps towards it. I also sent a message to IR, asking for the management and board to comment on why ROIC and other growth quality measures are not being incorporated into the incentive plan... management change presented a wonderful opportunity to improve the situation... but I also presume that nothing got done about it.
I know that I do not know enough about the company and am an insignificant nobody retail investor. However, it is often very frustrating when we are being completely ignored by people whose salaries we are technically paying out of our ownership stake. There seems to be a lack of leadership accountability and fiduciary spirit in many companies.