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At no stage did I suggest that A40 were entering areas of any of...

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newbie thomas

426 Posts.

109

12/01/19

22:42

Post #: 37098685
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Originally posted by CarrotGrunt ↑

Originally posted by newbie thomas
OK, I was happy to let this topic slid by but if people keep asking and questioning my opinion then I feel the need to further explain my position.

When I am selecting a company to invest in I now consider the BOD's interaction and performance as a major contribution to any investment decision.

I think that it was Buffet who said something along the lines "I would rather invest in a mediocre company with great management than a great company with mediocre management".

I have been investing in the ASX since the lates 90's and have picked both winners and losers. What I have found in general is that the losers BOD's generally display a poor interaction with the shareholders. By this I mean:

* Only issue announcements at the last minute with the minimum amount of information.
* The only skin in the game is gifted shares with no or very little of their own $'s invested.
* Paid themselves high wages and set easy to attain milestones and then give themselves a performance bonus
* Set performance milestones and issue shares/options for essentially doing the job that they took on.
* Allow the share price to drift lower then accept and support a buy out at say a 40% premium to the deflated price but in reality it is a huge discount to the share prices weeks or months prior.

To me leaving the announcement until the last minute infers that the shareholders are not a high priority and this is one of the things that rings alarm bells for me.

I have seem this before with PRW, QMN, APG, VTI, DOU and maybe 10 or more other spec stocks. In my experience there are far more duds than winners and the BOD has an enormous impact on the companies success. If the BOD are immersed in self interest then the shareholders will suffer.

At this stage (in my view) the jury is still out on A40 but to me there are some undesirable things starting to emerge. Others will no doubt disagree.

Cheers

Newbie Thomas
We seem to be going ok with all your other bullet points though. I'm going to go ahead and let the last minute announcements thing slide.

I also follow a lot of other Lithium companies and i seem to remember a certain other company having very poor shareholder communication when one of their offtakers was having troubles last year, lots of moaning going on over on those threads.

Maybe you are being to harsh on some companies in regards to communication................or maybe you are just trying to get a rise out of everyone....................seems to have worked.

Whatever gets you through your weekend i suppose.

Expand

At no stage did I suggest that A40 were entering areas of any of the other bullet points (they may or may not be as I haven't really looked into it that far) all I stated was that IMO it does make an make an "iota of difference when the announcement" is made and my reasons for it.

With regard the other Lithium company I assume that you are referring to AJM and I agree that there was discontent with regard to AJM shareholders concern over one of their off take partners restructuring. I think that at the time there had been no default and as such nothing could be announced but I like many other shareholders were not comfortable with the situation and would have preferred more information.

As regards A40 I don't think that I am being harsh at all, I made a single comment on timing that has been misquoted, misread and mis-interpreted

I do am doing nothing more than clarifying my original statement and explaining it further when prompted.

Cheers

Newbie Thomas

A40 Price at posting: 25.5¢ Sentiment: None Disclosure: Not Held
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