mtq getting 70-72% of nms ?, page-10

At the capital raising Rob King advised that he had no silver bullet and turning the company around would take time and there was no guarantee it would be successful. Here we are just over 12 months down the track and at the first sign that things are starting to head in the right direction and someone else can see the promise and offers a pittance that fails to recognise the true worth of the company the directors say sell. What a bunch of hypocrites.

Not only have they paid off CL when he had no right to anything they pay off Rob King and the CFO by allotting them $746,000 in shares. This is on top of his exhorbitant salary. He is alrady being paid above the market rate for doing his job. What about the loyal shareholders that rescued them from the banks clutches. Through all this turmoil the Chairman continued on with his nose in the trough.

The arguments supporting the sell recommendation were pathetic. Fancy considering the average share price during a period when NMS was in the middle of huge restructure, had let assets go at fire sale prices and were busy working on the future direction of the company rather than being out aggressively chasing business in a high growth market forecast at 8pa over the next 5 years. All these actions impacted on the net tangible assets. No consideration was given to how this improved industry growth coupled with structural changes may improve profits. The Price Waterhouse review of the restructure concluded that the initiatives had the potential to improve EBIT by up to $13.5m pa. The BDO analysis which ommitted the potential improvement from the new structure considered the future EBIt at $3m pa. They then used this as a basis for their valuation.

Do your own research and make up your own mind about all this.