mutton dressed up as lamb!, page-5

My opinion is that Malcolm Jackman has not been properly incentivised by the board. I don't know them (and haven't looked them up), but I think the board must be an ossified and senile old bunch of codgers to be signing off on this (and to have signed off on all of the dumb deals that got them into trouble in the first place).

If you compare the attitude of Malcolm Jackman compared to that of (say) Matthew Chun at BEC(ton), there is a world of difference. Matthew Chun has been incentivised by being offered a pile of out of the money options. If he pulls the SP back to 33 cents or whatever - he starts to get rich very quickly.

Malcom has been incentivised in the other direction. He benefits from painting ELD as a pile of turds, and himself as the hero that is keeping the business alive. He has no incentive to stare down the banks and tell them to get stuffed. He has no incentive to tell his investment banker buddies that he is unwilling to pay over the odds for a bargain bin 15c capital raising. What is his best play is to raise lots of capital so that he has plenty to play with, and then a very comfortable existence without needing to sweat. Also he is possibly owed lots of favours so that there are some good retirement directorships coming his way. The shareholders hardly figure in this equation.

Helps to have the right incentives, and the right board. I'm glad I bought the ELDPAs and only $500 worth of ELD. I get to profit from this at the expense of the existing shareholders - I imagine many of whom are older and elderly rural people, probably without much access to shareholder meetings.

BTW - this may all turn for the better (worse for me personally), if the politicians take an interest in this. It is a transfer of wealth from the bush to the city, and the rural voters are used to harnessing their swing power! I think this would look rotten under the microscope of a parliamentary committee.

It is great to be a complete cynic when you have cash in the stockmarket. Assume people in charge will follow their own personal interests pretty much to the exclusion of their shareholders interests, and you make money!