BNE Needs an Activist ShareholderI've been reading the latest information circular for the upcoming AGM. Lots wrong here.
When the same management that almost ran this company in to the ground with high debt then gives themselves raises 2019, 2020, 2021 (probably more of the last few years but I've only read the latest info circular)...there's something wrong.
When the same management that almost ran this company in to the ground with high debt then reduces and cuts the dividend and common shareholders get slaughtered....there's something wrong.
When the same management that almost ran this company in to the ground with high debt then has to have bankers come in and impose restrictions on the company to force balance sheet clean up....there's something wrong.
When the same management that almost ran this company in to the ground with high debt then writes themselves now in the money options for themselves (including board members)....there's something wrong.
When the same management that almost ran this company in to the ground with high debt now watches every other producer and their dog returning 'substantial' capital back to shareholders (and lays out future plans).......there's something wrong.
What do pesky shareholders get? a share price that spins it's wheels in the mud since there is no ROC, no laid out plan/timeline for substantial ROC.
The board is not holding management accountable for shareholders. Like the activist for SU recognizes, there needs to be some changes to unlock value here too. Changing board members and management is a start. But but but Bandit, everyone was in trouble. Not true, CNRL, yes Suncor, Imperial, and others that actually have had past profits were just fine (i.e. those that ran real profitable businesses and planned for downturns). Those that were not generating enough cash and net profits to cover a dividend and paid those elevated dividends out of debt and financings were in immediate trouble and it was clear that all this would happen when the tide went out starting in 2014. I wrote about it many times before it happened and how anyone could look like a genius if they had access to capital but, if that window closed (it did), then it would be instant trouble for these companies that were operating that way.
BNE should be much higher right now even without a dividend. I watch a lot of analysts and commentators in Canadian oil and gas producers and I hardly see any mention of BNE among any of them. Eric Nuttall the rockstar analyst and fund manager has no time for BNE either. There is a severe lack of interest in funds buying in to BNE. Why would they when Cenovus et al are returning capital right now today? There will be no buybacks here since the stock is so illiquid so dividends are the only other tangible way to do so. So, where are they??