RE: WeirdNo mention of undue
financial constraints in the third quarter report. I wonder why they thought they could get away without a shareholders vote?
- the MD&A filed on SEDAR says it quite clearly
- the public record shows that more than 50% of the shareholders who were not participating in the Private Placement had to vote in favour for it to be approved by the TSX. And I'm pretty certain it has the TSX's blessing so ergo, shareholder approval was sought and received.
I thought it was interesting that they would focus so much energy in talking about the benefits of the Sheppard facility, they've been talking about it for the last 32 quarters. Yes, yes we get it Sheppard will help this company turn around. Just once I'd like them to mention the fact that they bought the Sheppard building with money from the IPO. Just once I'd like them to explain why it took them so long to move into the facility and how much money it actually cost to build out. They moved the head office there in what, 2001?
- the public record shows that the building was bought in Spring 2000 prior to the IPO
- the public record also shows that the building construction was placed on hold immediately following Sept. 11, 2001
- the public record shows that the building was listed for sale in 2004 and 2005
- the public record shows that constrcution at the site re-started in 2007
I know they've had the last few AGM's there but now that its complete they should invite all the shareholders there to see it in action; perhaps invite all the CFO's and GM's they've had since they bought it as well.
- I've seen the site and I know other investors have as well. It is a worldclass plant and likely the reason DDi made a bid for the company
- the Company is on its 4th CFO in 12 years according to the record
- the site has only had two GMs as I can see ( Bistow and Rallis)
Those of you who think I'm being unduly hard on the company should note that I've been a big believer in this company for a number of years, a shareholder from the beginning. However, the last couple of years have left me disenchanted. The continual turnover of management, excuses about the Canadian dollar/economy/commodity prices and the appearance by the BOD that outside shareholders didn't matter (Langston/Morrison buying a large block of shares at thirty cents rather than the fifty-five it was trading at). I think the last straw has been the private placement, diluting everyone but two shareholder (maybe not just the two shareholders but why didn't they do a rights offering to allow all shareholders to participate).
- all Cdn exporters have been crucified by the dollar since 2004. The dollar has appreciated 50% vs the US dollar since that time. It must be debilitating to revenues and the bottom line. Just look at the devastation: manufacturing job losses and plant closures across Ontario. It must be pure hell to be an exporter and a manufacturer in Canada today
- in December 2007 Langston and Morrison bought approximately 1 million shares in the open market??
- do you know something that I don't with respect to how the stock was bought?
- perhaps the thing to look at is who has sold stock (Morrison and Langston have never sold a dime). Bistow on the other hand unloaded most of his stock and was apparently an absolute failure during his most recent tenure (9 months). Does anyone know what the deal was there? Did he get a a huge termination and severance also for that fraction of year's effort? He got a big payout when he was fired in 2004 also I think.
You might ask me why if I'm so upset with the management of this company don't I sell my shares? Well I've lost so much money by now I might as well sit tight. I also believe that the company is worth more than ten or twenty cents a share. Would I vote for the DDIC acquisition at that price? Absolutely, I would trade my shares for shares in DDIC and take advantage of the potential that CYY has. Voting for the DDIC acquisition would be a vote for a change in management which this company is in dire need of.
- what is ironic is that DDIC was in Chapter 11 only 4-5 years ago
- in fact the vast majority of CYY's largest competitors in 2000 succumbed to C11 or C7 or volunatry liquidation(Viasystems, DDIC, Circuit-wise; Circuit Systems, Sheldal, Photocircuits, Litton, The Bureau of Engraving) and I lost count of how many plants were closed by Sanmina, Tyco, Merix, Multek. Even FTG (formerly PC World) is a product of a bankruptcy in the late 90s. In total I heard that of the 800 plants that started the decade only 300 exist today. And most of the larger ones are gone. It is an industry of small players begging for consolidation.
- the whole damn PCB and EMS sector is in one helluva mess
- hopefully CYY carries on in one form or another. The fact that it has survived a 75% decline in North American industry shipments ($11B to $3B ) is quite frankly unbelievable especially given the CDN$ disadvantage.
Your comments are good ones IWanderer. Someone once said that Langston has lost over $30 million on paper. Yikes.