MagIndustries Corp MAAFF

credibility

[pangloss81]

There is no way around seeing a credibility gap when it comes to management. There are just too many examples of them saying X but doing Y.  Sometimes, it might be due to circumstances beyond their control.  However, there is a clear pattern in their words not being realized.  A year ago, they presented MAA as looking for the last dollar, as everything was all wrapped up with consortium of investors...but more concerning is how they mislead analysts and investors alike.  Just a week ago Bill Burton and his acolytes gave a misleading answer to a straight question--what is your financial situation?  They did not provide an honest answer.  How can analysts take them at face value? To make matters worse, management behaves this way after everybody's patience is worn thin...and they tell us that shi# happens, and that X is beyond the scope of the call--more obfuscation and disrespect. 

Aside from being less than open and honest, some of their business decisions have frankly sucked and sometimes reek of nepotism. How can they possibly justify having their son as CFO? What exactly was behind the departure of Jeff Swinoga?

Further, now that we are issuing more shares, let's think about the decision to spend millions of dollars on a share buyback last summer.  How much did they pay for those shares? How much are they going to get for the new shares they are issuing?

I am still in MAA, but the story is becoming less and less attractive. And that is almost entirely due to lack of a credible management.