Maybe Mr Black noticed the GTK share price is lower than when he started 4 years and thought heck, thats not much to be proud of and packed a sad and left.
At the top of every bubble, everyone is convinced it's not yet a bubble.
Attended the GTK Annual meeting today. In light of the recent CEO resignation and CFO going a month or so ago, it was up to the Chairman to present the annual results. His shareholding is around 9% so he has skin in the game. As these were made public this morning, the address was more a quick summary of the woes that led to 3 or 4 profit downgrades beginning late July following post privatisation reduced government funding in the UK power market and the resultant round of merger and T/o activity and the knock-on effect of cancelled contracts etc.
Key takeaways: 1. 12 UK energy retailers went bust last year. It ain’ over yet. There will be more.
2. GTK forecast EBITDA for FY20 is $8 - 12mill, BUT H1 will only be $2 - 3 mill.
3. There will be no call on S/H’s for a capital raise. GTK will remain a ‘NO Debt’ company.
4. while they have been market leaders in this sector, new competitors are rising out of UK and Australia. There was emphasis put on their market strategy going fwd of developing new products for their existing customer base to protect their premium position
5. No word on why CEO left. Any severance package will reported in the next period.
In light of 1 & 2 above I will sit out the next 6 mths but will monitor TA for signs of new life.
Discl: sold most of GTK holding last Sept but I like their product, their focus of expertise on a narrow market that is applicable globally. Prepared to wait.
Last edited by whome; 26-02-2020 at 08:47 PM.
Reason: Part chopped off
Originally Posted by theace
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