Quote Originally Posted by Balance View Post
Who in their right mind will own shares in companies with management who do not deliver on their promises - year after year - unless there is the very strong prospect of takeover.

CVT and PEB are two of the prime examples of failed management, and companies which have already failed in their business strategy and have no alternative strategy save to pay themselves big fees and big salaries.
Well yeah, you're right, that's why the stock is so cheap.

The point is that this has "A2 potential". Just look at the history of A2 in the beginning, it was a complete balls up. Could have never happened. Some how they turned it all around. Execution was perfect.

It's not just CVT management fault. The whole industry needs a rethink.

As good as A2 is, you're paying a huge premium to own that now. It could easily do a "CVT" and experience a similar collapse/bust/bubble pop.

The real issue was that it was too easy to fake Manuka honey and too many jokers got into the industry for a quick buck. In other words the barriers to entry are too easy, where as starting an A2 Milk farm takes millions of dollars. The industry needs to clean out all the mess, and get some kind of regulation/certification. It then needs time to consolidate and earn public trust again.

Maybe the best thing to happen to CVT was the bubble it just experienced, cause now there's a chance to change and do it right next time.