Raks you said "However, if things come to a head over this Annual Report and Smyths running of hte company, perhaps they will strive to ship him out and make a good company without him. Depends how many 'people in power' see the light."
Isn't this what happened after the whole sands solutions thing in '02? Smyth resigned, a new board was formed, the company was going to do things properly from now on. But if there is no basis to any of the things the company says they have in their basket, as many suspect, then the new board has to effectively start a new company from nothing. There wasn't. They couldn't.
The new board even went on to promise a public examination of the individuals involved and pursue all legal avenues to recover the loan that was made to Sands. And that was the board chasing alleged wrongdoing involving local companies under Australian regulations, not loans and investments to offshore companies with potentially untraceable trails of ownership being chased by some disgruntled shareholders. So it should have been much easier.
So is that the best we can hope for? making Smyth leave and having the company just grind to a standstill again, only to be started up again down the track when everyone has had enough and moved on (or brought around to his way of thinking like the last board must have been to invite him back!) ?
And if he IS ever "shipped out", how do you know he really is? They may just bring in a new chairman who says he is disgusted with the way the company has been run in the past and things will be done differently from now on. On paper for a while they may look like as though they are.
The irony of it all is that the only person who probably has the ability to bring CVI back around, bring the share price back up and then issue enough placements to raise enough capital to turn some of these things into reality and make the company a "good company", if it ever can be, is Smyth.
CVI Price at posting:
1.0¢ Sentiment: None Disclosure: Held
