RE: Share price strength! More resiliant than my other shares!!20 Oct 2023 12:47
I know all that. Spent many years advising boards of listed companies, so this aint my first rodeo, and I know how it works on the inside of many companies, how boards operate, and how managements run listed companies. My point here is that many investors (incl the big institutions ) trusted that Nero undwerstood the market intimately (after all, he had a ready answer for everything up to just after FDA approval, when he then didnt), had created very close commercial relationships with the customer base, and had properly planned & stress-tested the commercial strategy once FDA approval came through. In addition, there was an expectation that our Board led by Selvey would have done their job properly by ensuring that Nero was properly interrogated & held to account and that the management strategy and team to deliver it was fit for purpose. None of this happened.
Instead, it appears that Newland had no idea what to do next. In the echo chamber down in Guildford, it seems to be a case of him believing his own hype, hence no attempt to strengthen the management team over that period, or to consider Board changes. Rather, Newland blithely assumed that his 50/60+ discussions with potential customers would rapidly crystallise into commercial orders and interest would soar. Blaming industry conditions at time of profits warning last Jan was farcical and depressing. It clearly revealed that he was either blind-sded by his own monofocus or had
no clue about what was actually happening at the industry coalface where it mattered. Assuming fast commercial conversation and giving investors that impression was particularly dangerous given the industry's historic conservatism, but he ploughed on remorselessly. As a result, all credibility has been shattered: he was IMV absolutely right to raise more cash on the back of the approval, but he undid all that effort by shafting shareholders with a profit warning, not long after. That was a disaster for his credibility, especially as it showed management weren't on top of things and could not be trusted to deliver. Since then it's been downhill all the way. Newland is in danger of becoming a latterday Clive Sinclair (but without the knighthood) with a great product that no one wants but he was convinced would revolutionise personal transport. Newland still has time to turn this around but frankly the omens are not great.
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