GREY:MAAFF - Post by User
Post by
canadianpilgrimon Jul 08, 2009 4:10pm
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Post# 16125574
Current price
Current priceAs much as I love this company, I don't like their investor relations. They don't always have maximum shareholder value as a motivating factor in their decisions. It seems like a company built for insiders.
They make a private placement at $.42, then quickly afterwards sell a majority stake at $.70. In the middle of final negotiations, they let their CFO walk. If past practice is any indication, this means good news is just around the corner.
This company was at $.56 when the CFO resignation was announced. That is the main reason for the current price. It added an element of uncertainty to the future of a small company. (Is the Chinese deal falling apart? Financial malfeance, etc.) In this market that's poison. The price has decreased almost 20% since. It looks sloppy. He just had to hang in for 1 more month, then make the announcement. Couldn't they offer him something to stay for a month? He leaves as part of the company restructuring, not now.
For the insiders and those who know that this deal is done, this is just another buying opportunity to pick up cheap shares. For cautious and nervous investors, this is a red flag, but ultimately a missed opportunity.