management performance

After my Mum and Dad lost so much investing in RED they asked me to look at the past performance of the current and past executive management.

The results are shocking and they have asked that I share some of it with you.

I ran an investment exercise from Dec 2003 to the present following the current MD of RED (and others).

If you invested A$1,000 in Tectonic (TTR, now PRH) when the current MD of RED was appointed in 2003 and then rolled over your investment into each subsequent company he was appointed to as a CEO, COO or MD during his time there (Trelawney – TRR.V and then RED), your $1,000 investment would be worth only $16.76 or 1.7% of the original (including adjustments for FX and consolidations).

That’s a 98.3% loss!

The following graph illustrates the negative rollover performance against the rising gold price with some annotations of events during the period.

And this performance was during a time that the mining industry was booming.

If you were using the $1,000, following the management, investment strategy above at least you wouldn’t have lost money while the MD was between jobs (marked as NIL on the graph).

My Mum and Dad’s broker says you should always look at the performance of the management.

Sadly they didn’t with this investment.

I am so sad that after years of my Mum and Dads hard work in their market garden, that it has come to this for their investment in this company!