Good morning again,
Ok ---------- this is about long term things - if you are only interested in DT or very short term - this will be of little value - but, for us long termers, as I am --------- I and all my team think this is critical -------------- it is about the people of the company ------------ well, mainly one of them - but an important one.
It is no secret ------------- you can have the best balance sheet - the best gizmo or the best idea ---------------------- NONE of it matters a bit - if the people are not up to it. If they can't cut the mustard - you have a problem.
If they fall off the rails ------------ you not only have a problem ------- your company can go to the wall - and take your money with it.
Two of my team went to the meeting - my partner and myself. It is no secret that NC and myself and my partner have been communicating for months now. Several have wondered why - well, to clear that one up first ----------- I asked NC why he rings me and what he wanted.
He said, he contacts different people for different reasons - and me - aside from the trust and friendship - he uses me as a retail sounding board - he asks me things - he tells me things - he wants to hear what I think and what I think others think - then, he works through all that and uses that info. as part of his keeping his finger on the pulse. I also asked him what he wanted me to do - as, I couldn't write about many of the things that were said ------------ his answer was - 'I don't want you to do anything at all - just be there and give me your views' -------- words to that effect.
And, here was me thinking it was just my stunning good looks and magnetic personality
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Ok ------------ to that end. NC tells me things - and, from some of the things he tells me over the months - and the fact that he is a high energy person - and gets little sleep - and, combine that with the fact that my partner has worked with dozens of CEO's and exec.s, can smell a company dying at 100 km - before anyone else knows - and my experiences with CEO's and Chairs and the like -----
well, my partner and I realised that some of the things NC was telling me didn't match - from one conversation to another - and then didn't match some things when they became public -- please note that NC never says anything that can be used as insider info. - but, he sure says things that can't be written about publically.
So - heading off to the meeting with NC - we had a personal meeting with him ------------------- why? - Well, several reasons ---------- but, one of note - was that we were concerned that he might be suffering from sleep deficit - have problems with cortisol levels - and his judgement may be effected by that.
It is not uncommon in high energy people - and it isn't uncommon in exec's and CEO's ---------------------- and, it is potentially DEADLY.
Let me give people who weren't at the meeting an idea of the bloke ----------- finally, finally, finally - he was exhausted ---------- apparently a rare thing. I don't know why - after all, the bloke had only flown from America - had 19 meetings (might have been 17 - I glazed over at the thought) in the days between landing and Adelaide - then had a breakfast meeting with us poking holes in him - then interviews then the meeting itself ------------ well, bugger me - they don't make CEO's like they used to - I have no idea why he was exhausted really ?
So ------ that is what he is like ---------------- and, well, with our concerns -
We had to sound it out --------------- and, if we had had our fears confirmed -------------- well, I wouldn't be writing this ----------- I would be exiting this morning.
You will be pleased to know that after our meeting with NC -------------- we are completely happy ----------- very comfortable.
He not only has control - he is in fact smarter than I thought he was. The discussion was very open - we laid it out on the table - and we really hit him between the eyes. Although he did get a little uncomfortable and slightly defensive - once assured that we loved him and patted his hand ------ he explained the 'apparent' discrepancies.
It turned out that there were indeed no discrepancies at all ------------- just my/our limited understanding of the situations - and it was all laid out and crystal clear.
It is also that many of the things he does and is doing for us - are quite complex ---------------- and, as he talks at about 10,000 miles an hour - you often have to piece together things over several conversations ---------------- as you will see when I talk about the NY trading --------------- it ain't simple - and, it is being engineered as we speak.
So, the end result -------- we are comfortable ------------- actually, more than comfortable. He is a young CEO - and he isn't 100% -- but, he is pretty close - and he is growing into it well.
The situation with NC now being in Virginia and away from the team - will require watching -- but, at this stage, we don't find it problematic - either for the team - or for Nick.
We believe there isn't an issue at this time with his burning the candle at both ends ------------ yes, he should get more sleep - but, he seems to have been this way all his life - and once he gets the bit between his teeth - he lives and breathes what it is atm.
And, atm -------------------- It is Alexium -------------- Alexium the business. Aside from personal life ----------- he puts the 'business' - the growth and health of that above all else.
Now, one thing I will also say is that we spoke about announcements - and how they often told us bugger all as shareholders and often opened up more questions than they gave answers.
Well, ----------- IMO - that is going to continue - and here is why.
First - we are talking about a bloke that has a LOT of experience in bring companies to the board - a LOT of experience. Now, Nick says -------------- AJX is the hardest company he has ever worked with to get accurate and clear information out to shareholders ------------- 1. because of the military thing - that's obvious - but, also 2. because of the nature of the FR industry and all the business in confidence stuff.
So - he puts out announcements for 2 primary reasons.
- Compliance -------------------- eg. the ann. on the tents -------- an exclusive deal ----------- he said, he had to ann. to comply ------------------ but, 'at that stage' he couldn't give us much detail ------------------- so, we get an announcement that gives us no bloody idea of how big it is - and we are left scratching our heads thinking - well, what the hell does that mean.
- He will release when he thinks shareholders have the right to know something is going on ------------- even if he can't expand -- so ditto ------------- confusion again.
So, as others have begun to discuss - the tent/outdoors deal will be expanded on in the following weeks ----------- and, yes it is good - but, for the names and exact numbers, we have to wait ------------------ I have no idea why - but, we do. Regarding that deal ---------- and, I guess it's public as he spoke in front of over 100 people and probably talked his head off in Sydney to as many again ------------ he says that deal alone ------------ by itself - meets our yearly revenue that we projected ------- so, you figure it out
It is also a 'good' deal for Alexium ----------- we of course won't know the margins, nor will we know the royalty % ------------- but, it will show up in the halves.
Now, another thing that came up last night - and it was good to see.
NC ain't alone. Every single person on this planet who gets things done --------- has someone watching them - in the case of CEO's - it should be the chairman and or board members.
Last night it was Craig Smith-Gander - who stepped in when needed - was clearly keeping things in check and being very watchful. He is completely different to NC - as is Gavin Rezos and that is a very very good thing ------------------ OMG can you imagine if you had 2 Nick's in the one company ---------- what a bloody disaster that would be.
So, be aware - there is someone(s) watching. A calming influence - apparently allowing full rein or as good as ------------- but, there none the less - and HC'ers present last night would have seen that minder behaviour ---------------- and that was great, very reassuring - the dynamic between CEO and board and chair is very important.
So - that's my thoughts on a very critical matter ----------- executive summary --------------------- on track, great CEO, really nice guy to boot - completely for the company - completely for building a solid business - expect to keep scratching your heads on announcements - but, be aware that our temporary confusions have zero bearing on how the company is performing - the end result is we are a mere 3 months into commercialisation - and we are flying. All good.
Pinto
