I keep following this name cause - similar to you - i like the industry. i'm not convinced the assets are great as there is no evidence of it (as they have been written off more than once since listing) but they should be okay - and at some point they may be worth an investment if the valuation gap is justifiable.
I don't disagree the Board has proven to be weak too and it should be renewed...
But I disagree with anyone giving the guys who directly caused this to be one of the worst IPOs of the past few years the benefit of the doubt. They are the reason you are losing money, make no mistake. The business is a mess not because of weather - that would have been manageable - but due to greed, poor acquisitions, poor judgement, greed again and poor execution. And greed.
MRG shameful performance was a ES-JN show from day one. They are the ones pushing for debt funded acquisitions after they cashed in $10m at the IPO. They were on the Board. They also put the Board together.
Having a 'new board' nominated by the individuals who made this a mess is like defying the definition of insanity. Keep supporting the wrong guys and losing money every time. Don't get me wrong, they will make money for themselves, but will they make money for you?
It's this sort of mentality and acceptance of shadiness that makes the ASX a wild west.
I would like to see the new CEO rebuilding this business while the board is renewed gradually and that process should be driven by other investors rather than the ones who put together the board in the first place. That would make it investable. Right now it looks more like a never ending episode of The Muppets Show.
And who knows how financials will look like on 1H. Given all the promotion and write offs, the new debt covenants are not bullet proof. Making all this noise with EGM will not give the banks a lot of confidence about the business' direction either. Time to let the dust settle with the new CEO and focus on rebuilding it with a clear vision. That's the way forward.
MRG Price at posting:
38.5¢ Sentiment: Sell Disclosure: Not Held
