CMI has been a takeover target for some time. The problem is...

CMI has been a takeover target for some time. The problem is that the Non Exit Director also being the major shareholder with around 39.7% of the shares has a very high exit price which no body is prepared to pay.

CMI is stuck in nowhere land and has been for some time.

The previous CEO had good intentions to utilise the cash for acquisitions to grow shareholder wealth but I think was thwarted by the non ex director (Major shareholder)

Mr Heslington is a smart operator, he has positioned himself to be crucial to the business and will now push for a massive pay increase/equity or a seat on the board.

The other issue is the underlying electrical business. From what I have heard the business has been focused on working capital to drive cash out, this has resulted in less stock and hence less ability to service customers and a loss of market share.

The business needs someone to get in and drive growth of the existing business and look for smart acquisitions. Otherwise it will stagnate. The focus of driving cash only will not drive growth and hence shareholder value. The good thing is that the major shareholder has a very high exit price (probably unreasonable based on the current operation of the business) and so it will not go for a song, however I think it will stay in the doldrums unless someone gets in and drives growth and looks for transactions that will grow shareholder wealth.