Post by
Bean_and_Dunn on May 07, 2015 12:15am
Reasons to replace the board and or management:
Lack of performance. One only has to look at the market price of Nordex. Presently it sits at 64% of the value it was originally issued for in 1970. (16 cents versus 25 cents)
Strategic plan is not working. Nordex revenues grew by 7.7% but profits, I mean losses grew by by at least 10 times that amount.
No clear explanation.
for the huge write downs in either of 2013 or 2014. This lack of communication is disrespectful to shareholders. I find the board and management's attitudes to be totally out of line with sharehoder interests.
Lack of hedging program.
Clearly Nordex has obligations which are settled in US$. With management who thought ahead they would de-risk their US$ accounts by buying US$ call options so that margins would remain the same thoughout the year. Contracts need to be written such that Nordex primary input costs are also hedged. If the price of AN goes up then a surcharge is added to their clients bill.
No clear explanation as to whether the Johnex product line is producing a profit.
Shareholders are being kept in the dark about this whole product line. Why did Nordex hire 20 people for the Johnex line if they are not selling all that those people are producing? Why would Nordex be running 3 shifts if the product is not being sold.
Legal costs are still way too high.
Yes they have dropped substantially year over year, but for a company of Nordex' stature (Market value of $3.26 million) it is way way out of line.
CEO has no incentive to produce profits.
He is paid a salary whether Nordex produces a profit, or tanks. This is the result of the present muddle headed board. Give Jim anything he wants. Want a truck? Sure go right ahead. Cash? Sure take some more. A pension? Sure.
Uh Mr. Taylor, could you produce some net income for the shareholders?
B&D