"What is clear, however, is that a number of holders believe the 4C was evidence of total failure of the company, or they cannot wait for OBJ to reach 'critical mass' in terms of products in the market. The share price is therefore crap."
No. many long-term shareholders remain quite committed to the company because of the objective progress of the company with the prospect of a multitude of products coming to market (via their licensees) in the short-term. Wave II, Wave III and Wave IV. It's pretty clear that's going to happen. Let me correct you, however, with what shareholders are totally unsatisfied with:
- A 4C the contents of which did not reflect expectations that had been generated by OBJ managements own previous advice, and their broker's advice, about projected forecasts by now.
- A recent trading halt for an important announcement relating to the licence of a second technology that will be "game changing". This, however, was mucked up and delayed because of problems they were having with satisfying the ASX with its contents. They have had these problems before, yet they still are unable to anticipate these when they submit them such that shareholders are left in the lurch at a time when there shouldn't be avoidable disputes with the regulator.
- When the trading halt is lifted, and shareholders/the market is presented with the announcement - a agreement that has been entered into, that hasn't actually been entered into because part of it has been, and the other part is yet to be, the lack of clarity and the inability of management to effectively communicate what exactly it is that is "game changing" is palpable. They refer to fees and royalties and game changing technology that cannot be disclosed.
- The vagueness of this trading-halt worthy announcement, which generated the ire of the ASX, was treated with disdain and negativity by the market. Holders bailed (not many mind you, but they bailed never the less). These holders had obviously had enough of the fundamental deficiencies in company management communicating and explaining with basic clarity a fantastic achievement for the company. The price goes does to ridiculous lows. Who is responsible? Management. Unacceptable. Infuriated long-terms shareholders.
And the ultimate correction to your post that I make is this - the 4C was not evidence of a "total failure of the company". Rather, it was more evidence pointing to a sequence of communication errors on the part of management that shareholders of this publicly listed company are simply not satisfied with. In terms of their ability to communicate with shareholders, it is clear they do not know how to at a satisfactory level that would alleviate any sensible shareholder's concerns.
And so the angst with which shareholders such as I are presented with is generated by this huge conflict. On the one hand, I am totally satisfied with the excellence in technology achievements, application, and uptake by global corporations that the company has achieved - to the point where I am reasonably comfortable that the company will take off financially within the next 6 to 12 months. On the other hand, this progress on "fundamentals" would seem to be hindered, to a larger or lesser extent ( I really don't know the impact this particular point has), by the deficiencies in company management with respect to what they communicate about the company's successes to the market and to third parties. They're not consistent and often contradictory with their ocmmunications. For example, they are quite happy at AGM's and road shows to boast about certain products in the pipeline, and even allow photos to be taken, and have photos taken for publication in the Australian newspaper of devices their partners are planning to launch. But then, later they realise they shouldn't have shown them because their clients have complained that they confidential. Seriously, I'm gobsmacked they allowed this to happen. Then they start saying everything's confidential and they can only release limited information. Then their broker of choice, with whom they have a seeming close relationship, publishes to their clients via global email distribution information about a current "Japanese" partner that they felt obligated not to disclose to the market. We were never told they were "Japanese". So is this a case of "degrees of confidentiality" depending on who they're talking to?
Queries to management are sometimes met with useful answers, but they are also often vague and evasive with many email queries these days going unanswered.
A shareholder who challenges the ability of the legality of Directors' to propose resolutions of performance shares, without any specific conditions/goals attaching, is labelled "trouble" for highlight the fundamental deficiency in the proposal. Embarassment in the unsoundness of these resolutions would seem to lead to a lass minute decision to withdraw them before the AGM even commences.
And so we have this aggregation of factors that generates somewhat of a conundrum. A confluence of incidents that undermines confidence in how general day to day things are being run, on the one hand. Yet a continued fascination, and an apparent mass preparation for roll out of further magnetic applicator devices, by Procter & Gamble of OBJ technology devices in the coming months. Along with, of course, the "game changing" agreement which has just been signed which involves probably, but an unknown amount, of money. What does one do? Stay or go? I have chosen to stay, for at least the next 6 months. If things don't drastically improve from the management side, or the objective fundamental financial side by then, I will be attending the AGM as I did last year with a few resolutions organised of my own and ensure that they are passed.
All that said, to be quite honest, I don't think it will come to that. Things will be drastically different by then and all of this ire will be forgotten and I'll probably go up to Glyn, shake his hand, and say "well done, I can only imagine the pressure you been under in the last 3 or 4 years." I am optimistic that that is what will happen.
Just my stream of consciousness right now.
J
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