LVT 0.00% 0.6¢ livetiles limited

Delisting is not a good look.From my experience the reasons for...

  1. 486 Posts.
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    Delisting is not a good look.
    From my experience the reasons for delisting are all bad from the perspective of a retail investor.
    Why does a company delist?
    Obviously the business/ Plan / Model / product etc is not doing well or as per expectations or promises of management.
    So their share price is plummeting or going nowhere and sadly they have no idea how to turn the ship around.
    So they seek to delist.
    Why you may ask is the share price so vulnerable?
    Short sellers and traders are often blamed but in reality they are just the bottom feeders like sharks and leaches doing their job to take out the diseased and weak creatures so that disease infested creatures do not spread contamination. It sounds cruel and it is but that is how the world works. It is important to face the reality that the real cause of failure is predominantly connected with poor management decisions leading to financially catastrophic outcomes. This problem is often associated with self enrichment and objectives that just suck the life blood out of the fledgling business. Others have mentioned the activities of the management team or their leaders.
    Note to self, fact check management prior to risking my cash.
    What positive outcome could there be.
    Clearly a financial recovery is desirable and the management team have identified that the only viable method is through a delisting. This would help the larger holders escape from the pressure of the asx market and give them time to set up some other deals to keep them going but i dont see it helping any small holders. From experience delisted companies have not recovered and either languish in my bottom drawer or get taken over by management at a low ball price. Take TAP for an example.
    Strong companies with good management will struggle from time to time but they surround themselves with a number of allies and benefactors that ensure their survival or due to their desirable product they get taken over by a larger company.
    Back in the height of the pandemic i thought that LVT had some good products that would do well, but evidently there are some issues that are outside the control of the business and i was wrong.

    So what to do, learn from your mistakes and move on.






 
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