Everyone is going to pick their favourtite stock and say great management, great company. But lets think realistic here.
For the prementioned stocks:
SSN: I didnt touch it around 1.3 cents because of its debt position and equity position. I know they recieved a huge inflow of money on friday that wipes off debt completely. However, the question that someone must ask themselves about their management team is why did they have to issue over a billion shares to get it right?
CDU: So much bickering has been on that thread about dodgy management. Then when shareprice increases, everyone says "directors are brilliant". Directors of this company seem to be very shifty.. I wouldnt touch it even though there is takeover rumors. Though there are takeover rumors for every company.
PNA: dont know anything about it.
Now what do I call a good management team. A company that can meet its targets. Have a look into BUR. 200million shares and have a look at its company presentation at the begining of the year. They have subsequently met all their targets and have had no delays.
Another company that has huge potential is BCC. The managing director is massive and well known through out US where he has been a pioneer for the oil and gas industry. BCC has extensive assets and a rosey balance sheet. Market hasnt taken to it for 2 reasons IMO:
1. They keep buying assets and no action 2. There was a spring tree agreement that potentially capped the shareprice.
Nevertheless, directors are well respected with 2 management teams. 1 team for US texas and one for Alaska. I have a feeling that this share could be the next FMG. NEverthless, they have annouced that they are drilling 3 more wells next month and realising flowrates for 2. So the next month or two will be very interesting to see how astute the director team is.
Nevertheless, clearly I am an investor in the above shares. And clearly, everyone will have differences of opinion. But the one thing I agree with is that, a share price is not driven by its assets; it is driven by its management team.
A good share will have a management team that are able to meet their timelines without delays. IF anyone has got any of these under 30 cents on their watchlist let me know. Becuase thats the business I am in and thats what I look to buy.
I want directors who meet timelines, dont have to raise unessasry equity to maintain cashflow, and a company with a decent life support (cashflow) and quality assets.
