RE:company assurancesThey answer that they are puzzled as to why their stock trades so cheaply, but the reason is pretty clear. Of course they cannot admit it's because of their share repurchase, it would be embarrassing. It's not a coincidence that a long time significant shareholder decided to unload at that exact moment. I also think one mistake can't define a generation of work to build this great business. Why do some successful companies trade at crazy high valuations like Costco, it's because of the trust in the management and the long time track record over the last 30 years. Costco's inclusion in many index funds helps them with a solid foundation. This isn't the case with ADF group, the share price is maintained by a few retail investors and a handful of institutions. The company needs to build trust over the next 5 years without another PR setback to gain back the respect of the market. As we can see, the market has been brutally honest. Last quarter was ADF's most profitable quarter ever, but the market doesn't seem to care. Although I have no issue with how the management rewarded themselves right before the capital gains tax, it doesn't matter what I think. All we can do is wait until the market trusts the company again. The best assurance the company can give us is a better dividend.
I realize I keep rambling about this company on the forum, I guess it's how I can process the share price movement rationally without losing my mind.
I'm on the boat that I'm confident the business is robust so I'm holding my position and I believe the management team can easily turn it around. I've been following your posts for a while and it's what got me to invest. You have been so accurate about everything in terms of earnings and about the business side of things. Now we just need to cross our fingers and hope for the best