Iggy was a entrepreneur - not a consolidator. The Board should have slowed him down some time ago - they are more than equally responsible for their shoddy oversight (or weakness)
The difficulty we have is that Readhead and the majority of the Board are legal/finance people. We need operations/processing expertise. I feel strongly that the unfortunate accident would have been unlikely with a few risk averse production experienced Board members keeping the pressure on the management team!
Further concern in this regard is that the now scheduled cost review and cost cutting exercise will reduce costs by a third - down $4.3 to $7.9! In a cash strapped organisation how is it possible that a competent Chair and Board who are even half on the ball could allow this blow out to occur?
So bottom line:
1. Iggy gone and on the face of it, this is good - but what implications does this have for an Aussie Co in China? 2. We still have Craig Readhead and fellow incompetents in charge (remember they allowed GXY to get to this point!) 3. The dilution of the share price with an 8c issue is holding a gun to our head! But this is only so if you believe Readhead and co are capable of fixing their own dereliction. If you don't think they are, then you will only be throwing good money after bad, so don't subscribe - because they can't do the job! 4. The business model and concept of GXY I think is very solid - unfortunately we have a failed Board and Management team. 5. If the next few days sees Readhead and few of the other unsuitable Board members resign, then I would be in. A bonus would be a new competent chair!
Thought please
GXY Price at posting:
7.8¢ Sentiment: None Disclosure: Held
