In the present circumstances, delays can only fuel panic.
I believe the CSR share price for a while has reflected uncertainties and negative expectations in the market about the general economy, the construction industry, asbestos compensation as well as a degree of dissatisfaction with the direction of the company.
As each day passes, there are growing concerns by shareholders (see the various comments on the forum) about the future share price. Some analysts are also providing downbeat price targets for the company, without Sucrogen.
In my view, the longer the repatriation of proceeds process goes on, the more the risk there is of something going wrong. A prolonged period may set the company up as a target for special interest groups to get in on the act. There is already an emerging sense of unease amongst shareholders as this process draws on. In the meantime, however, the directors continue to receive their generous and increasing remuneration packages, despite the negative total returns having been generated by the company under their stewardship over the past few years. If directors botch up their proposed allocations of the Wilmar proceeds, members should ask them serious questions, starting with the chairman.
Directors should act decisively and promptly and provide a positive plan for the future course of the company to members now, instead of letting shareholders wrestle with these uncertainties over the next few weeks.
If directors feel it more important to sun themselves during the holidays, perhaps shareholders should give them the opportunity to do so all year round.
CSR Price at posting:
$5.07 Sentiment: Hold Disclosure: Held
