@Sskout -- sure, no problem. @tle85 -- see below for my thoughts.
---------------------------------------
There's a lot to digest here.
Firstly, I'm disappointed the "Against" voters didn't get over the line. Ultimately, the conversion of 15M performance rights (10M of which went to Aaryn) seems to have been the key difference. As @packyourbags correctly points out, the timing of these performance rights being converted was impeccable.
Secondly, if I view this purely objectively, there are both pros and cons of Rob Downey and Peter Torre being re-elected as opposed to a new refreshed board team with technology credentials and strong market-facing leadership.
Re-election:
- Pros: i) Extremely tight cost controls, ii) familiarity with the business, iii) a focus on profitable growth, iv) win at all costs power mentality, v) skin in the game, vi) Aaryn is a good talent and will work hard to get an outcome for the business and hopefully shareholders
- Cons: i) Lack of independence on the Board (the proof that Mark Caruso is still steering at the wheel here (despite resigning) is that the AGM was held at the site of Mineral Commodities Limited (MCR) in Perth, which is the company Caruso is the CEO of), ii) retail investor perception is very low (RE "used car salesman" comment from @warrenblewit) iii) lower interest from institutional investors iv) less inclined to pursue aggressive growth, v) Caruso's criminal charges hanging over the business
Refreshed Board Team with Tech Experience:
- Pros: i) Focus on aggressive growth, ii) More likely to see an experienced technology executive as CEO, iii) Market perception issues regarding lack of board independence resolved, iv) Caruso's criminal charges no longer handing over the business; v) Significantly increased likelihood of institutional investment which would push the share price up; vi) stronger tech-focused board
- Cons: i) Likely to see less tight cost controls, ii) Lower initial familiarity with the business (although I note that Tasso is the real MVP here and is a constant in either scenario), iii) May lose Aaryn and he is an asset to CXZ
While the result was in favour of re-election, it was close enough to send a message to the company. I think the company and product fundamentals and the valuation are compelling enough for me to continue to hold. If we fall below 1.6c (< $13M MC) I will be buying. CY2021 will be a pivotal year.
This is not the end of the end, nor is it the beginning of the end. But it is, perhaps, the end of the beginning.
Interested to see how the next chapter of this story plays out.
Watch this space.
T.E.P.
(20min delay)