RE: new board appointmentMakes good sense. RH is acting as a stakeholder not just like an employee or a fee collecting member of the board. This in my view is great news.
RH must be frustrated that ATQ is not performing like IEC. IEC has both the same top line growth but has been profitable. IEC has been hitting ten year highs in the past few weeks because it is now CONSISTENTLY profitable.
The management of IEC are stakeholders in the company and actually earn less in salary than ATQ however they have seen their wealth improve with the market cap increase of the company.
Since 2002 when this $20 company fell to its low point of $0.07 per share, the new management and board have created a hundred fold increase in the value of IEC. IEC now trades 100 times higher at around $7.00 per share.
They did this by staying out of debt and not becoming a victim of the debtors. This is the Bay Street strategy and it results in lots of fees for Bay Street and shareholder destruction for shareholders.
IEC went through its history without dilluting its shares as there are still only 8.6 million outstanding.
IEC operates out of one plant--is that not more efficient?
IEC uses local auditors and lawyers saving hundreds of thousands of dollars--is that not beneficial to shareholders?
IEC key management are shareholders--is that not significant to have stakeholders who own their company?
IEC judiciously manages its debt--bottom line, IEC stays in control, not the banks and financial institutions who feed off of getting companies in debt and then "finding" at great expense a "solution" for the company.
So with such a huge EMS market in North America there is lots of room for IEC to continue to succeed and for ATQ to emulate IEC and become reliably profitable and add 100 times value as has happened at IEC. The record of the IEC achievement speaks for itself.
ATQ should start to rock now with stakeholders controlling the show. Serious cost cutting and rationalization should be in the cards. ATQ should have been profitable in q1 and certainly big time in q2. The company is not in the business to do excellent work at a loss.
Looks good to me.