Hi Saltocan, you really have to wonder about the agenda of the Board & also given Mr Xu owns so much of the stock.
Sales have really fallen off a cliff ( note back to 2011 levels $55m ) - if you look at the last two quarters compared to the corresponding prior periods ( Dec 16 is down 47% & Sep 16 is down 34%) - these are big drops - something is seriously wrong - it is if so the brand and everything assocaited with it is being ignored- customers running away in droves -despite millions being spent on distributor branding & company owned stores. Nothing but a sea of red for all those dollars spent & nothing seems to be done about it- just more marketing spend.
Or is there something more sinister ?- fact Mr Xu could now attempt to buy back the remaining 54% of stock he does not own for a measily $5m ( 254m at say 2c) - this $5m investment would return him assets in his own country - 100% control of his company, audited shareholders funds of $62m - comprising liquid cash of $28m land & buildings $7m , and working capital & other assets of $17m. So how long before and at what price will he act ?
Last year shareholders sent a message - forceing the Chair to consider his position ( subsequently resigned) plus initiating a 1st strike on the remuneration resolution - it seems this was not enough as there has been no sign of change. So yes the new Chair is nothing more than a puppet ( no change at the top) ....
Yes take 2 this AGM ... but I feel that the Board will be much more prepared this time and ensure that there is some chinese friendly fire (eg on their side voting).
SBB Price at posting:
1.7¢ Sentiment: Hold Disclosure: Held
