Short commings of Daniel Chieu.....5 Aug 2014 23:11
Before the recent results announcement covering the 15 month transition period, if you asked the question.."Why would you buy into FTO?"...you could think of a few decent answers...like a small but possibly growing dividend. A tie up and integrated stake in one of the biggest distributors in the biggest energy market in the world, CGH..A growing hold in an ever growing market in aviation fuel supply in China..through Bluesky Aviations. Collaboration agreements and JV's with some of China's largest state owned companies.. all to name but a few assets of a fairly decent portfolio of exposure to the growing Chinese energy market. Not to be sneezed at.
Yet for some reason, the market has regarded the recent results as poor? Why? Well, we no longer have our small dividend. We no longer have a majority stake in any of our assets, thus we have become an investment holding company, with no real bearing on any of the boards we sit on. We have lost our premium listing and so what little prestige we had. Our board namely Daniel Chieu have clearly made errors, as they had implied that an annual dividend was to be awarded as they more or less said so in the end February statement...I quote....
The Company's statutory accounts for the fifteen months from 1 January 2013 to 31 March 2014 will be published by the end of July 2014. As a result payment of the Company's normal annual dividend will be deferred three months to November 2014 but will be related to a fifteen months period.
So Daniel Chieu has clearly Fcuked up and it has led to a sustained hemorrhaging of the sp since the most recent announcement. We have one investment, namely CGH, which pays a dividend. The rest, to my knowledge do not. So, even though our share of profits in Bluesky reached £17 million, unless the board decides to pay a divi, we get nothing....but our investment in Bluesky will benefit......but not us shareholders. Daniel Chieu has complete control over the direction of FTO and there is nothing we can do now.....He wont even turn up at the agm in September to explain "his direction" to the rest of us....
We will no doubt have nothing new with the next IMS, as nothing really has changed. In fact, many very very long term holders in FTO, will probably summarize....because nothing really has!!
Good luck to all still invested....
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