Post by
Wiggens on Oct 09, 2019 1:59pm
New Management?
I can understand why Energold failed. They ruined their brand. That is that they went from being a high-end specilized drilling company and tried to compete on price. They pissed off loyal clients and could not compete with compaies who were clearly providing a better product. This in a business where the delivery of product is critical to the clients success. In diversifying their product they ignored ignored their existing clients. When clients raised concerns they ignored them.
The company currently has no CEO or CFO, but it is interesting to see that Fred Davidson remains one of the remaining three directors. It does not look at all like new management.
I am not sure the minerals division of the company can be saved as it has become the Lada of the industry. I do not know anything about their O&G division. Hopefully it is not in the same state as the minerals division.
Unfortunately, I expect the current shareholders are bag holders. Because of the state of the industry they will not be in a possition to compete, partially because of the damage done to the brand. Who wants to buy a Lada? Who want to hire the people who made the Lada?
Because of where the companies proffit centers were, it is unlikely that other companies would be interested in buying Energolds contracts.
Therefore the value of their assets is the value of the company. Unfortunately, the company went on the cheap with their maintenance of equipment. Poorly maintained equipment is not worth the price of the parts.
Best of luck.
Comment by
Wiggens on Oct 11, 2019 7:45pm
If the geotechnical and oil & gas division were better managed than the mining division of the company, there may be some value there to spin off (capital wise). But I do not see management behaving differently in relation to different divisions of the company. I would be wary of having any of the companies senior management in the directorship of any company I invest in.