No chance in hell. Board already rejected $1.95. Commerce Commission will also have a say..
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No chance in hell. Board already rejected $1.95. Commerce Commission will also have a say..
Liam,
Somehow missed this reply in August but you are bang on my friend. If you're new to investing and you're thinking like this you will go far. Like you this is the only NZX company I'm interested in as well.
As we have both realised, all they need to do is carry on making a complete balls up of everything they touch for this to be a great investment particularly from August prices. Any improvements will be a bonus.
The following sums up how the issues you have identified occur all to frequently.
The management of every company has two basic roles: to run the company and to allocate the capital that it earns. The first task is obvious, but the second one is frequently overlooked by both investors and managements. Managements generally tend to be better at managing companies than allocating capital. These are two completely distinct functions and require different skill sets. A large part of top corporate managers reached their lofty positions by working their way up from lower positions or by specialising in specific fields. Therefore, these people tend to be experts in the fields within which the company does business rather than in capital allocation. It is very typical, therefore, to see managements that run companies well but allocate capital poorly.
Speaking of capital allocation STU should be buying back stock like fiends at these prices, best shareholder return they could ever hope to achieve. An infinitely better use of capital than reinstating dividends or funding another stupid acquisition.
GreekWD it's my understanding they didn't reject any offer, the offer was withdrawn.
Yeah I know, common sense really. Be stink to give shareholders a div then lay off xxx amount of staff.
[QUOTE=liam;840448]Liam,
Somehow missed this reply in August but you are bang on my friend. If you're new to investing and you're thinking like this you will go far. Like you this is the only NZX company I'm interested in as well.
As we have both realised, all they need to do is carry on making a complete balls up of everything they touch for this to be a great investment particularly from August prices. Any improvements will be a bonus.
The following sums up how the issues you have identified occur all to frequently.
The management of every company has two basic roles: to run the company and to allocate the capital that it earns. The first task is obvious, but the second one is frequently overlooked by both investors and managements. Managements generally tend to be better at managing companies than allocating capital. These are two completely distinct functions and require different skill sets. A large part of top corporate managers reached their lofty positions by working their way up from lower positions or by specialising in specific fields. Therefore, these people tend to be experts in the fields within which the company does business rather than in capital allocation. It is very typical, therefore, to see managements that run companies well but allocate capital poorly.
Speaking of capital allocation STU should be buying back stock like fiends at these prices, best shareholder return they could ever hope to achieve. An infinitely better use of capital than reinstating dividends or funding another stupid acquisition.
GreekWD it's my understanding they didn't reject any offer, the offer was withdrawn.
Board said no to earlier off then FBU increased then withdrew...
All good mate. Just hope FBU stay away and hope for shareholders sake the board can walk the talk.
https://www.nzx.com/announcements/364832
Bloody waste of space to appoint another director just because she is female imo.
This company desperately needs real industry & commercial experienced directors.
No happy.
.......she sure has some solid credentials behind her Balance. Maybe she's got bigger #alls too (when it comes to deal making) than some of the male directors so lets give her a chance. If and when the takeover remerges (will be sooner than later at these low SPs IMHO) then her commercial experience could come in very handed to negotiate a deal??