Spyglass Resources Corp SGLRF

RE:RE:RE:RE:RE:RE:RE:RE:RE:1.62

[sanityseeker]

I hear you Sober. And You could find posts on other walls where I defend management and point out that a low share price isn't necessarily the fault of management. Market conditions and certain hiccups are often outside of managements control. How management conducts itself is the only fair test, and particularly in tough conditions. Take Alcoa for example. They have persevered through rough times in the aluminium sector for several years but done a great job of allocating capital responsibly, controlling costs, and focusing on their best performing divisions. They didn't wait for a turn around to worry about debt reduction. There was little light at the end of the tunnel one year ago when they were trading under 8.00, but they were clearly dedicated to doing things right. One year later, inspite of continued strong headwinds, they are refocus, trading up over 16.50 and still set to benefit when aluminum market pricing finally improves. Such a turnaround could never have happened if they took the SGL approach, being as follows: 1. Continue to maintain a bloated mgmt head count in spite of being pinched on cash flows, and generally take a relaxed attitude to cost control; 2. Move to an equity based compensation plan that ensures you continue to get payouts even as shareholders continue to lose money; 3. Continue to pay out an unsustainable dividend that is not covered by cash generated for as long as possible and finance it with excessive debt; 4. Recklessly let your debt grow even as you divest non-core assets that you claim are for the purpose of reducing debt; 5. Don't worry about debt, because hopefully energy prices will go up and you'll be able to settle it later, and you can then take credit for improvements outside of your control; 6. If energy prices go down or other adverse events occur, you won't be ready due to high debt level and cost structure so shareholders will lose more money, so make sure you have a good severence package so you can profit on a buyout at extremely depressed prices if that's the only end game left (I am only assuming this last point).