I have it on good authority that for the last two nights Raks and shadders stayed in a run down shack near the WA coast with make shift beds, with the dunny and a watering hole in the backyard, but apparently the views from there are seemingly quite nice. Only other good thing about the place, it is near a rundown bottle shop ... .
I would have thought MS would have had the courtesy to offer his front lawn for a tent city to accommodate his two favourite shareholders, but … .
Anyway, back to the EGM and my thoughts on it.
From the start, it was made quite clear that the chairman would take full control of the meeting and discussion of any kind would be killed in the onset and anything not already on the agenda would be killed at once. Anyone deemed to break those rules would be warned once and after that would be asked to leave. Plain clothed security guards at the ready. Welcome to the CVI EGM!
A list with proxy votes was distributed even before the meeting and even though the numbers were quite impressive, it was quite clear that we, the smaller retail holders didn’t have a leg to stand on, because, as I assume, the large numbers of shares issued of late were voted as a block.
After the opening of the EGM the first three resolutions were rammed home before anyone new what hit them. Seriously at that speed the EGM could have been over in around 12 minutes flat.
To the rescue came Douglas Armati, Chairman of the Company Monitoring Committee, WA Branch of the Australian Shareholders’ Association. He took the word and stopped the flow, by asking MS a few stinging questions, which, my guess no one of us would even have thought of in regards to trading insolvent over the last few month and if any of the companies taking the share issues were in anyway interrelated and/or connected to Global. MS answered the first question with CVI being solvent at all times and the second question with no interrelation between the companies receiving the share issues. In a later conversation with Doug the importance of this point was made quite clear and also if they would now hold about 40% of the coy. So 123enen, if you read this, the research on this and any connection to Global would be of very high importance, if you would find the time to put your mind to it!
Under the before mentioned circumstances shadders who took the podium next, made a very good and very prepared impression and very much different to MS who unlike to previous meetings seemed very insecure and very vague in his answers. So in my personal view very much unlike the snake oil salesman, some people mentioned here before. As a matter of fact the “fox in the spotlight” comment mentioned here before was spot on!
I feel the single biggest mistake MS made during the meeting was to say, that he was quite happy to answer questions, as it removed a lot of the protective cover the chairman had put up for him. However, that didn’t mean that shareholders got a lot of good and open answers to the questions presented.
Raks who was next in line also made a very good and very prepared impression, however as mentioned before the quality of the answers was just simply not there.
Now, I don’t want to take away Raks and shadders thunder for when they make their presentation here, so I will stick more to some personal views about the EGM and my impression of MS.
What actually was important to me personally was the big change in the impression MS made on me and how he came across. You may recall months back that like others here who have met MS and had conversations with him, I also was taken in by his enthusiasm, confidence and his single minded drive for CVI. If I’m not wrong, I remember reading glowing reports from TMT, t4p and others here and I could only confirm those impressions from my conversations with MS at the time. Following from that I often maintained that there were only two camps. Either one believed in the CVI story as presented or not. Funny thing was I happened to believe and my wife who only ever heard MS’s voice during BRR interviews absolutely didn’t. Female intuition?
Anyway, for some time now, as one part of the CVI story after another was falling apart, I have been in between camps and changing camps. If this is the part or time when you feel like saying “I told you so” – DON”T, as it wouldn’t go down well! Point is though MS has changed somewhat, at least for me he doesn’t pull it off anymore, as he does look and act like the previously mentioned “fox in the spot light”. The MS I thought I know would have stood up for himself, his actions and the company. He probably would have had some strong words to exchange with the shareholder action group, in presenting his case followed by a polite “and now nick off”! Today’s MS simply comes across as if he has something to hide and engaging the extra protection of the very aggressive chairman who was ramming resolutions down shareholders throat to get the meeting over and done with didn’t help at all. No it rather confirmed the previous evasive actions taken by the company during the preparation towards the EGM in order to avoid open discussion and transparency.
Yes guys I was the one asking about Enditrade and also trying my luck with the refinery (percentage, time frame and finance of it). Hmm, bummer they didn't want to discuss the pulling of resolution 13 &14, the bonus options issue either :( But seeing that the same block of shares were voted against, I guess the new share major shareholders didn't want any possible dilution of their just issued holdings. Seeing it from their point of view, as they aren't holding any of the old options, it even is understandable. Not nice, but understandable, that's if it wasn't a company ploy to start of with.
CVI Price at posting:
1.6¢ Sentiment: None Disclosure: Held
