Evidence of non-confidenceIf we needed more evidence of the market's lack of confidence in GRN management, share price has now dropped below book value. This is particularly amazing for a company with a clean balance sheet. I have to wonder if the market will test 'tangible' book value next.
On paper, aspects of the company's strategy sound intriguing, but they haven't been able to execute. The last two conference calls, while cordial, I think hurt their credibility badly. In particular, I thought the answer to the question of 'At what sales level do you become profitable?' sounded evasive. And the discussion around a recent money-losing project was painful to listen to, and, in my opinion, raised more questions about their ability to predict, or control, profitability.
The industry should be peaking, so there's still time for a management reset.