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Natuzzi SpA Message Board

  • shadowstockblogspot shadowstockblogspot Oct 1, 2013 12:25 AM Flag

    Yes Tim Stabosz did an amazing job on the CC...

    hello,hello, hello can you hear me. Okay, hello can you hear me, hello do you hear me ... crazy but you got through twice with critical questions. If that was me I would have dropped the F bomb along with some insults in Italian .

    I still don’t know what to make of Pasquale’s ability to understand the concept of a going concern. #$%$, 70 consultants from well know firms working on a 5 year plan to be released in December. It’s not like they don’t have talent in Italy to understand why they haven’t made money in the last 7 years. Refuses to buy back share with the company's cash at these share price levels or interest rates at historic lows.

    Thanks again for the work on the call.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • shadow,
      1. re the five year plan - as I understand it, having a five year plan is required by the government as they negotiate with the unions and government to layoff and/or lower wages. Not sure if they needed all the outside firms to help them out, but if you believe what Pasquali stated in the CC, the information that will be offered when the plan is released in December will provide a ton of information on their expectations as to costs/expenses/manufacturing process changes etc. in the short run.

      2.Obviously a rational person understands that a company buyback of shares makes sense when you're trading at a fraction of tangible book and you believe you have any sort of future in the midterm. However, while I am not an expert on the Italian market...the government and unions have much more power in Italy then in the US. I would think that spending company money on buying back stock, when at the same time entering intense negotiations to try and lower wages and cut redundant employees (Natuzzi v Unions and Government) by claiming that your Company needs these cuts to survive, may send the wrong message to the Unions an Government....that is that Natuzzi has excess cash, and that they expect things to turn around shortly.


      • 3 Replies to fabulouspoodle
      • Board is very quiet. Earnings are due in few days. what is the expectation?

      • Board is very quiet. Earnings are due in few days. what is the expectation?

      • You make good points. But I would think management should be able to “sell” the idea of at least borrowing money to buy back shares. Offer stock in exchange for cash compensation to incentive all levels of employees. 30 minute meeting to explain the benefits of NTZ stock ownership. The importance of profits after 7 years of mismanaged losses to ensure NTZ is there for future generation of Italians.

        With 3.75 per share in TTM GP or 204.35M and 93 million cash on the balance sheet the issue is clearly an epic management failure. Pasquali flying around the world with his blackberry 24/7 may be hard work but sounds like a horrible allocation of his labor.

        I would love to see them succeed in this industry and would be willing to wait a few years. But as Tim stated, loosely translated, this old school craftsmen model may be dead. That gets me thinking as of this moment I sit next to an old school craftsmen from Italy, really. This is the truth. I will call him Mr Giuseppe. Giuseppe was a craftsman trained in Northern Italy skilled in the art of tailoring. The best tailors hail from Italy. The skilled tradition has been unraveling for two decades thanks to cheap knockoffs from China and other countries. It’s sad to see its demise but its reality. Giuseppe would explain its death over the decades. Sad

        I hope Pasquali is not jousting at windmills hoping that increased volume or this new plan will save the company. He needs to think outside the box if he really wants to contribute to Italy and its future in high end furniture design.

        I’m holding for now and may add just not sure.
        Good luck

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