outsiders versus insiders

I find a considerable problem taking certain discussion board comments as credible. It is reasonable to suggest that fair opinions are based on understanding facts and circumstances. If I am not in possession of facts I am unable to form an opinion. Without the facts, opinions lack credibility and can be described as conjecture or guesswork.

I am continually amazed that there are posters on bulletin boards who have the impertinence to make high level judgement on the suitability of the CEO of Oilex to hold that position.

There some wonderful examples of posters assessing Dr McCarthy’s competence without being in possession of the facts and background. There is a splendid example of a poster on iii in UK under the name of TMC50 who declares “Bruce should resign, before the shareholders force him out. This man is incapable of managing Oilex”. I seriously ask how this person perceives he is well places to say that? I have many views which include disappointments but even with my drive to find out as much as I can about the company, I would never publicly that I was qualified to assess the CEO’s capability of managing the company.

TMC50 is not alone but is a fine example of a person who makes wild claims and judgements without the required knowledge and information to present a discerning view. He also makes the following statement: “The market now regards the prospects for Oilex as nearly zero and the management as a failure. There is a simple fact that in the foreseeable future there is nil prospect of operational cashflow breakeven. BM has failed and should resign.” If that could be considered as a reasonable judgement it is heavy stuff. My opinion is that it represents profound unfair judgement where the circumstances leading to the views are both flawed and inaccurate.

What is clear to me as a humble investor is that many of the views expressed should be tempered and less subject to the effects of emotion and unqualified assessment.

There are mechanisms in place for dealing with management performance and shortcomings. In reality, very few of us can be in a position to properly assess a board and its members. However, where there seems to be a lack of progress and news together with slippage in expectations there is a tendency to be more severe in judgement.

I am one of the outsiders and I will never pretend that I am an insider who is qualified to embark on judging the suitability of board members. I have the conviction that these people have much to lose if the company fails and are charged with a driving desire for success. We should give them a fair chance.

All the best

Jimmy