OTCPK:PILBF - Post by User
Post by
aggmanon May 11, 2015 9:20pm
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Post# 23717394
USE IT or LOSE it (since 1964).
USE IT or LOSE it (since 1964).My call for action - is well-founded.
Management are paid (and management and the Board are stockholders) to manage the performance and growth of the business and by association manage the share price. The first drives the second.
We have now had a year of under-performance in Los Angeles and sheer non-performance. Richard Williams - "an experienced concrete enginerr was retained in November 2013 to market material in LA. Wel, 18-months later - what at $125,000 and benefits, and some options, that a lot of money for gross under-performance). For quarterly excuses on slippages.
Its embarrasing.
I'd argue the balance sheet has been poorly managed (its in pristine condition courtesy of a dilution, a poorly and/or falsely explained one). What money has been spent on "mysterious limestone?" - $1M?
Cash, my fried - is just that - its its cash. It is not an asset. Debt (sensible debt) acts as a tax shield and increases your enterprise value.
"USE IT OR LOSE IT" (Analysts have been screaming this at prissy, cashed up debt-free companys since 1964 - true - I modelled on paper).
What if CEMEX came in an lobbed in a bid at $3.50 (40% premium) - what would you do? Management - would publish a paper humbly say they will buy back stock to manage the price up.
So do it proactively, and not re-actively.
Polaris - if it does not watch it self - is a sitting duck - it will be taken out as a tidy, easy morsel, and not a buffalo-sized, grisely chuck of indigestable bloody, sinewey flesh.
Mark my words - if this is not managed properly for shareholders...some will come along and do it themselves, and properly.
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To your question on pricing. Technically there is no upside to pricing. Aggregate moves up 5-20% a year depending on pricing. Of course its great to see this momentum in cement, agg, ready-mix conc. And it all moves up together.
But again US concrete are getting better price increases in the same market - I dont get the lack of performance on pricing.