Magic, I think the majority of those are reasonable sounding alternatives given the current predicament, however I think you and I both know that current management won't be overly incentivised for some of those suggestions whilst handsome remuneration can be gleaned irrespective of performance. This was the whole issue raised in the gold discussion at the investor show, whereby ab sat uncomfortably and somewhat silently.
So then IMO the option becomes to accept the direction under current management, or as suggested, to sell. A third alternative is the formation of an investor action group, however I don't recall much enthusiasm for this when another poster ( I think game316) raised this suggestion. Surely as you have strong opinions on how differently things should be done,you would be in support of any such attempts to use shareholder leverage to lobby these ideas to management?
proinvestors interview with AB was the actual thing that convinced me to invest in Red Rock because AB was absolutely sparkling in that interview because everything was just about to happen and he was so positive. So of course i didn't want to miss the Red Rock boat so i jumped on board and i was all set for the multipenny rise.
Unfortunately i've lost a few thousand pound since. But on a positive note since August i've lost 10lbs in weight and i've never felt so healthy. :)
have to agree apart from selling jupiter shares, it seems to be accepted across AIM in general that dilution is the best way to raise money yet if you look at the returns needed to get the sp to multibag then its the equivalent of a wonga loan! unless the bod deliver then the typo would say causes not or.
"Necessary evil IMO. If you don't like it (I'm not happy about it) then their is only one answer...Sell"
I disagree and I think this is a mind trap that many here seem to automatically fall into. AB says it is "dilution of extinction". It sounds final doesnt it? Unquestionable, resolute, immovable. I submit that there are alternatives. Removing the working capital expenditure would be one, or at the least reducing it to a bare minimum, removing BoD salaries until something is delivered, selling JMS holdings, merging with RGM to remove overheads and so on. There are alternatives to the status quo, it just requires someone with the desire and drive to opt for one or more of them.
I was reading Yamana's Management information circular, which is issued prior to their AGM and I noticed that they give the current management shareholdings as a multiple of their salary. I thought what a great way of showing the managements real commitment to the company. In Yamana's case the value of the lowest holding was 1.8x salary with the highest being 20x salary, with an average of 6x salary.
Good idea to include in AIM company reports including RRR and RGM ?
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.