Link to new Cation presentationLooks like their site isn't too clear as to where the new presentation they refer to in today's letter is. After a bit of digging, I found the link:
https://fixcpg.com/docs/Cation_Shareholder_Presentation.pdf
This presentation is better than the previous one.
I noticed Nutall saying that he had spoken to Cation and CPG about this activism, but he didn't want to make his conversations public. He later inferred that CPG could use a shakeup, so I suspect he is leaning towards Cation's side. How can you not? The numbers are damning.
Time to let Cation in and get the stock price moving.
If I was Cation, I would propose the following, immediately after being elected:
1) Create a new position called "Chief Engineering Officer" and offer it to Saxberg instead of CEO. If he refuses, fire him. Either way, find a new CEO.
2) Re-price executive options to $15 / share.
3) Aggressively price non-core assets for immediate sale and use that money entirely towards debt repayment.
3) Sell off all the infrastructure assets and use that money to fund a stock-buyback.
4) Hire an investment bank to see whether the Utah assets should be sold or spun off. The market is giving little to no value to Utah in CPG's stock price. If they are capitalized, then the funds should be used for debt repayment.
5) All extra cashflow should be used 50-50% for debt repayment and share buybacks.
6) Fire at least 10% of the workers, and aim for management positions to eliminate, not field positions.
7) Open all supplier contracts through competitive bidding. Who knows what buddy-buddy contracts they currently have?
This is what I would do right in the beginning.