Q4 Conference Call I have been in shock since reading the Q4 release and finally gathered up the stomach to listen to the conference call.
First, this is not the first time that a quarter with some marked progress (when the stock was on the verge of collapse) has been followed up with a bombshell quarter. And it is the second time that it has happened just before the year end auditors come in. I'm taking a slow December and inventory writedown as a convenient way to come clean which is disgusting.
How can one invest in a company where you get nothing more than 4 conference calls a year where you can not believe a word that comes out of the CEO's mouth.
On the Q3 call, he said:
1) There would be EBITDA growth - there wasn't;
2) EBITDA margins would be stable - they weren't;
3) Tough decisions would be made regarding Nutri-Health - they didn't;
Now we get a piddly $1.7 million NA restructuring which I say why wasn't this done 2 years ago and what more could he be done today that he'll be doing 2 years from now?
Perhaps we should have taken our cue from when the Fonds sold 10% to Fidelity at what seemed like a bargain price or when Bouchard opted to purchase debentures yielding 5% when the stock was trading at $10. Smart guys - everyone is get paid to wait except the shareholders.
On the subject of NCIB vs. paying down debt - nothing is more accretive than repurcashing shares. When this company does turn the corner, management will use lower debt and a higher share price as an excuse to coninue their empire builiding. Leverage should naturally come down as a function of higher EBITDA.
Palininc has alot of fair points about everything - especially the fact that the CEO and probably the entire board have to go. Yes, the stock is cheap but it is proven these are not the people to unlock shareholder value. ALL IMO.