I would enjoy hearing any info or opinions on the CEO R. Waltrip. Why should he stay or go? Shouldn't he be held responsible for letting this company accumulate so much debt and making such poor financial decisions that its very existence is threatened?
I have to say I am an agnostic at this point, although the equation that ("All funeral service companys" = Loewen) almost has to be wrong. False analogies often point to good investment ideas but is SRV the best way to play this one? I sure would like to be able to believe in the management especially the CEO.
My opinion, he should go. He operates as if SRV is a privately held co., often relies on (bad) advice of pals (Hunter expecially). Ithink he would like to step down but his ego will not allow him to do so. At this stage, SRV would be better if he and his buddies left as SRV needs management that has experience in running a BIG corporation.
Yes the CNC's had expired but most of them are or where mangers of thier locations. Many still have a feeling of pride in the firm to which they work. They want to hold up thier heads in the communities they live. Think of those that took a portion of sale in stock and the rest in CNC. Now the stock is worth a fraction of what it was and now there are being offered the door and a discounted CNC. By the way if I read that release correctly they are releasing the former owners from the CNC's before original expiration date. From, the release "These individuals were under employment, consultant and/or covenant-not-to-compete- contractual agreements and have been relieved from their obligations or restrictions under their agreements"
This could backfire on SCI. Releasing that many experianced owners on the open market could be a dangerous thing. It has been proven that you can cold start mortuaries right in the heart of corp land in direct competion and make a go of it. Does SCI need more competion right now? I don't think so.