bad management

Sigma reeks of bad management. If you look at their performance, you can list the following :

1. Overpriced acquisitions which effectively cost us shareholders $ 425 million
2. Despite the acquisitions, the management have not been able to grow the company organically.
3. Bad management decisions such as the share buyback which was obviously designed to boost the share price without any fundamentals, and which effectively weakened Sigma and has now placed it in a precarious position with its bankers
4. Questionable ethics; Just look at their recent capital raising and not a peep about $ 425 million of potential problems. It begs belief.
5. Bad judgement. Just look at how they handled the latest bad news announcements.
6. Bad company practices. Forward selling months in advance during year end at huge discounts to fulfil their year's sales and profit quota, all tricks to hide its weak sales. By the way, this also falls into questionable ethics and bad management. What proper management would do such things and to such extent? What bonuses and performance stock options did they get from these over-inflated results?

The management can say that they could not foresee how their acquistions turned out but what are they paid for? Based on the board's and management's performance any office administrator could have done as well if not better over the last 4 years. They have shown absolutely no forward views on how to grow the company and in fact have stumbled from one crisis to another. Any fool can sell anything if you lower the price enough. Where is the value added, the brand enhancement plans, future growth apart from acquistions?

I have been a longterm loyal shareholder and now the worm has finally turned. I am totally disgusted with the board of directors and the CEO. They should all have the decency to resign but sadly that will not happen until they are forced out.

I am hopeful that with the high volume of share turnover in recent days, some competitor is buiding a stake and will hopefully launch a takeover. I will not recover my losses even if that happens but I will get great satisfaction from seeing these old fogeys thrown out on their butts!

Sigma has the potential to be a really good company but it needs decent, talented and ethical management. Lets hope we can finally hire some!