RE: Tender16 Jul 2019 23:44
Although many of us agree that XLM is undervalued the approach with the tender offer is completely wrong in my opinion. It is not the board’s/company’s task to set the share price - that is a task for “the market”. It’s like when I am telling you that I am a much nicer person than people are saying. That’s not how a public stock market works.
Management’s/board’s role is to operate the business and execute on plans AND to keep the market well informed about how it plays out. Good reporting is key in order to build comfort and trust. And on the basis of this “the market” will set the share price.
The big issue with XLM (as I see it) is that the management/board is doing a very poor job when it comes to reporting and transparency. Why are we not getting quarterly reports with more detailed insights? Why are we waiting until September for the reporting on first half year reporting?
And why is it that XLM is sitting on a big pile of cash but has not been able to do any large acquisitions? The affiliate market is extremely fragmented and their competitors are constantly announcing new acquisitions. XLM have cash to buy growth - but nothing has happened on this front since 2017 (except a small bingo acquisition last year).
I am not impressed - but I am not selling any of my shares at 80p.