The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
People can do there own research and see that the share price has been been on a downward trajectory for a very long time. However, the BOD keep raising their salaries. They are in control of the company, not me or you. They have control of the shareholder sentiment and whether shareholders are on their side. I will be more than happy to see a farm out and even more than happy to see a well drilled that is actually transformational but they need to deliver and soon because no one is happy with a penny share that isnt going anywhere.
There appears to be a very good negative correlation between BOD salaries and share price over the past several years. They really need to start showing that they are worth their exorbitant salaries, which means getting the share price up, not down!!!
See the misunderstanding. the 8mm 9mm shares relates to dropping below 5%, not total shareholding. Not many people have 20mm shares and they just dont seem that committed to EOG in my opinion. If the BODs cant stop the selling than what good are they?
TR1 rules-(1) reaches, exceeds or falls below 3%, 4%, 5%, 6%, 7%, 8%, 9%, 10% and each 1% threshold thereafter up to 100%
So according to the website, Polus have 5.79% and BGF have 5.91%. That is approximately 8mm or 9mm shares, respectively. That is a lot of shares to dump on the market and I would expect it is one or both of them as they have lost a lot of money (2/3rds). If it is them, the BODs need to convince them the share price is going up because if either want out, our share price is not going up.
Serif, I dont know absolutely that Africa is not going anywhere fast but to really get the share price moving requires a well and that is not going to be on a fast track, that is at least 18 months, at the minimum from now. That is why I said nowhere fast. They really need to do something in the meantime to get this share price moving.
How long will that take. Serenity, Ireland, Cloughton and Africa are going no where fast. Wrestle I'm afraid is already priced in the share price. The BOD need to pull a rabbit out of a hat now before the seller starts up again. Based on 235 days WH is being paid 1490 pounds a day to do something to stop the share price decline.
The problem is every time you get purchases at this low a price a 20% profit for them is still a very low price. It becomes a vicious cycle. It really is a mess of the BODs making.
I was told WH brought Serenity to the BODs. BOC has been Chairman for 5 years and proceeded over the share price destruction. They better hope there are 2 farmins, Ireland and EG this year which I find a completely unrealistic outcome. However, you can guarantee one thing, they will continue to say they are in the bottom quartile for pay.
The BODs say the major shareholders all support their pay, options and strategy but it is very clear that they do not. There was almost 3.5mm shares sold yesterday plus millions sold previously. We are told one thing and the facts tell a different story.
As for WA buying, who knows why, he has consistently lost money every time he buys, I guess a fool and his money are easily parted.
One of the biggest problems with rewarding themselves so many shares at such a low price is it disincentivises them from buying shares in the open market. Why would you buy shares when you know you can buy them for 1.07p??
The BODs are constantly saying 3rd party review for awarding themselves too high of salaries and too low of options. They don't need a 3rd party to tell them what is right for the shareholders, a good BODs would understand that. I am afraid this BOD are just showing themselves as greedy.
The other thing is that I hope they learned their lesson with SO and SW and that all those options given to them both as non executives (which is poor CG) albeit, SO was a self appointed exec when they were awarded, was that if a director leaves all share options should be cancelled with immediate effect. I wonder if they have put that in their share option scheme?
I dont think the BOD have learned anything from the shareholder revolt against greed. 6% of company at 1.07p is really shockingly low and not going to win any votes when you consider we need to reduce the number of shares not increase the number of shares. At least the Chairman, a non exec, has not been awarded any, as it should be. If, the BOD purchase their options, they will find it difficult to sell as it wont look good for them to sell when they are running the company.
we know the bods only reluctantly put the minimum amount of money into shares, so only had 3.4mm shares so cant see it is him. it is someone with a considerable amount of shares who they either have ****ed off or haven't convinced and are offloading.