Before I begin: It would be nice if the actors in play visited this message board to get the pulse of the stockholders for a change, considering that this is the only place where they can express themselves.
My main considerations are as follows:
- CEDC's letter does not absolve the board. It simply shows that they are not evil. Although, their good intentions cannot be considered a substitute for competence, the PPS says everything in that sense. Even if we were only looking at the PPS that was in place before Tariko’s letter.
- Too long a period of inactivity: CEDC waited for too long from June to October for the restatements to finish. The company was agonizing and the management was not providing any official information, no clear actions were taken.
- Very slow response time – see Tariko’s letter – they answered to it only after 2 days! And there are other examples as well.
- No sense of anticipation-not thinking for preemptive actions in order to leverage the effect of yet another delay in filing. The blunt announcement in itself was a proof of disrespect towards the stockholders. No explanations - as usual.
- No target date was ever set for any of their activities. (Stockholders meeting without a location and a date? My mind goes numb). They created numerous groups & committees that delivered nothing all this time. How about a shortlist for CEOs, CFOs?
They are good at acronyms though, CRO – that one took everybody by surprise.
And they finish grandiosely their letter by saying they have the stockholders interest at heart!
OK. But what is more important here is the future.
They need to either make a deal with RS or find a replacement solution fast, really fast, before year ends!
They have, going forward, to keep the stockholders informed. Because if Tariko hadn’t had published his letter we would have found out anything about what was going on. I’m skeptical though that the management will do this.
A question for Tariko: Is he going to present the strategic plan he promised, the following days?