There is a strong correlation between CEO's having doctorates and their ability to destroy value through empire building. The correlation gets even stronger if they attended one of Harvard Business Schools paid programs.
Dr Julian Andrews has achieved both these accolades and without a doubt was magna cum laude of the Value Destruction degree. Over the life of DRR about $100m of unnecessary G&A has been sucked out of the company and since the announcement of the acquisition an additional $580 million of value destruction.
MAC is a great asset, everyone knows this, but the cash flows coming from it can no longer be used to underwrite the value of DRR. This is because Dr Andrews will continue to overpay for assets using these cash flows every few years to grow his fiefdom. Unfortunately there is no shareholder on the register who has any interest in holding him to account.
DRR Price at posting:
$3.36 Sentiment: Sell Disclosure: Not Held
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