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Artaflex Inc V.ATF



TSXV:ATF - Post by User

Comment by elinvestoron Dec 15, 2011 11:02pm
313 Views
Post# 19327635

RE: Timely Reporting...

RE: Timely Reporting...It goes without saying that the Q3 results were a dogs breakfast and that obviously is a testament to the great leadership and competency of Carruthers and his team.  What is mind boggling is how the board of directors can justify giving very generous stock options and significant raises to the CEO and CFO when they knew the Q3 results were horrible. How can they increase their fixed costs knowing full well they have cashflow challenges. Does this board know what they are doing, this kind of stuff should be brought out during the AGM and challenge these decisions. I thought we were in good hands when the Israelis came on board, but they are as incompetent as the management team they put in place. Is there some recourse were the minority shareholders can bring this to a regulatory board's attention. This is absolutely absurd.  In additon, I sure hope Artaflex knows what its doing in keeping Carruthers in any capacity. How do you justify paying a sales person $200k per year and what do you do with the other VP sales they have there.  They have a significant amount of management overhead they need to address.  I expect to see some synergies in this merger and even that may not be enough to pull this off. In my mind, the new management team needs to review and reset the supply chain leadership. The gross margin continues to be pathetic and money is made in procurement.  One can only surmise that Adeptron did not handle procurement very well due to their financial condition. If you don't have cash, you are not paying your supplier on time and consequently, you have to pay whatever comes your way which may not be the best price and this in turn negatively impacts gross margin. I do not know if Adeptron is salvageable, but as long as Artaflex keeps the old Adeptron guards out of the radar, they have a better chance of succeeding.
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