what’s the secret of a great marriage?

Low expectations… It’s classic Warren Buffett, and like much of what he says, has deeper meaning than the humour that it was intended for.

The directors of MHM in my opinion, have made one crucial error in their management of this company, they have messed with shareholders expectations. I doubt that the delays, admin and production issues that MHM have had are in any way different to those of other start up technologies (or many mature businesses for that matter). In fact I think they have done well to get to where they are in such a short period of time.

The problem is that management (arguably naively) created an expectation of uninterrupted success that could have a multiple attached to it at a very early stage of maturity. This is a PR disaster waiting to happen…. And it has.
I am very happy to see Phil Thick on the board. As Shell co number one man in Australia for a number of years, I think he will be a very practical and level headed voice of reason for the rest of the board, who no doubt are technically very very capable, but who’s skills in managing a listed company may not be up to speed.. They are undoubtedly two very different skill sets.

I am concerned that the co has already created unrealistic expectations for the US. I hope this can be well managed over the next few months.


Go the Reds.