RE:RE:RE:RE:RE:RE:Everything else strongly green and ALA redWhat an excellent post!
I would vote for you prostocker to replace any of those swindlers that were and still are in charge of this sinking ship.
The language you use is the basic start for any mgmt whose stock has suffered even a fraction of debacle of the ALA during last 6 mths (would you believe, it was at $28 still this July).
Unfortunately not even an whim of that has been coming out of any mouth or release of the company itself...
prostocker wrote: Altagas reports having "a talented workforce of approximately 3,000 employees" on its website. EBITDA guidance for 2019 is $1.3 billion. So that's 2.3 employees for every $1 mm of EBITDA. That's 2.7x the average of Pembina, Keyera and Inter Pipe when I do the math.
I also tried to make a comparison on the basis of G&A...but lo and behold ALA doesn't break that out (lumped in with opex), which is a disclosure issue in my mind. No transparency (particularly for a company with major credibility issues) = no investor interest (Crawford, are you reading this?? This is basic stuff!!) Where's Watson on this? Hmmm...
I don't disagree that safety is critical, but how is it that Altagas' peers are able to run a lot leaner with no difference in workplace injuries or fatalities? Is there something about Altagas' assets that make them more dangerous???
Given the clusterf*** that ALA has been, the company has no excuse but to make sure that Board, management and employees all share the pain. Re-pricing their options is total garbage. If management and Board don't like it then guess what, there is no shortage of talented people in Calgary these days that will step up (can't be any worse for the share price). Nabors CEO just forfeited $4 mm in awards and cut his salary by 10% after their stock tanked over the past year. A change in leadership is not just optics, its tough choices that will inspire investors to want to buy the equity (or conversely not to sell). I know that Crawford did not cause these issues, but he's not here for his looks either, and now he has to own it!
They just sold a ton of assets (with more to go) so I expect staffing will drop anyway, but above and beyond what people go with the assets, there is clearly room to streamline staffing. If they do not reduce staffing numbers on top of those losses (and break it out!) AND announce across the board cuts in compensation for the Board, the senior managment and staff (with most of the hit being taken by the first two), by the time the AGM rolls around, then I will be voting my shares against all Board members re-election as well as executive compensation.
They have some great assets, but unless management takes responsibility for what has happened, then its clear that they are in it to milk the cow, and not focused on their #1 job, which is to create shareholder value.
If there is a proxy contest, then I will support the activist (unless its a clown like Sandy).
I suggest you do the same.
GLTA