I don't agree. The share buyback was done at a time when it looked like the issue was the discount and the support was to create a market. They could not have anticipated Covid and in fact, its been a lot more severe in small caps. So, they have performed for the past 6 months and the company has stabilised - now you have to decide whether you want a preference share - as I understand it is an interest rate so tax-deductible in the company. It creates more flexibility for the company. It also locks in a decent return for those that take them up. 3.92% after-tax in this market is pretty good - then add the option lock-in.
The proposal to install a new director, which seems to have been supported by the activist fund, was not well put together in my opinion. I could not understand what they were proposing - I could not see any benefit to shareholders, nor could I understand the relevant experience links. There wasn't a telephone number to call and speak to the candidate and as such, I have no idea what I was being asked to do.
I notice that the 4 months performance is plus 15%. I am happy with that. I also notice that it looks like the activist sold down as the votes were roughly 2.3 million against the remuneration report and for the new director so it also noticed that the sales since the morning of the AGM are around 2,374 million shares - not a definite but a logical conclusion that their bid for change failed and during and after the meeting the volumes happened. I think that its logical to assume they have left the stage.
I think that looking at the recent top5 portfolio they all look very good. I am happy and don't think the company is a mess at all.
GC1 Price at posting:
75.0¢ Sentiment: None Disclosure: Held
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