Thank you!!!!!!!! In my opinion the outcome is a best case scenario especially if all litigation has ended. Rather than Kellogg adding any additional directors (think that many shareholders would be hesitant to see him control more than 1/3 of the BOD) a better situation is if the 3 remaining "legacy" directors are replaced with individuals who are completely independent and have no allegiance or past dealings with MJS or Kellogg.
I'm cautiously optimistic. As you mention having the 2 largest shareholders on the BOD is huge. There are a number of potential upside catalysts which in due time will hopefully translate into an increase in stockholder value. In regards to the dividend I've always viewed the Wabush royalty as being the cash flow that funded it so I do have concerns as to what is going to happen and am disappointed that management has not communicated anything to shareholders.
Personally I think that the Kellogg group has a very good chance of winning but believe that it is in everyone's best interest to come to some type of agreement and drop all lawsuits.
At this point the only 'face saving' idea that would be hard to turn down would be if the company proposed that the BOD be composed of MJS, the 2 'independent' Kellogg nominees, and 3 independent directors that are not part of the Kellogg group. Other than MJS all current board members (the "rubber stamps") need to resign.
at any point in time he could have easily gotten a raise in pay, bonuses, etc.. My take/guess is that he has 'control issues" which is supported by the fact that MIL has had a prolonged ongoing search for a CEO, etc.
It appears that management is going to start selling (see Shock's post) non-core assets so they will be raising additional cash.
One thing to remember is that Smith LOST the proxy vote so if ever there was an incentive to make some shareholder friendly moves..........
Waiting for the 2014 dividend announcement.
In 2013 the dividend increase was announced on January 14th. My take now is that we see an increase from 0.24 to at least 0.28 and possibly as high as 0.32. I think that MJS has a definite incentive to make shareholders happy and it will NOT cost a lot of $ to do it. For example an increase from 0.24 to 0.30 cents per year is an additional outflow of $4 million. Hopefully this will be one of many shareholder friendly moves in 2014.
Ken Garff Automotive Group
- 3rd largest privately owned automotive retailer
- 77 franchises representing 25 brands in 44 locations throughout Utah, Texas, Indiana, Iowa, Nevada, and California.
- 3200+ employees
- over $1.5 billion in sales
The expansion opportunities appear to be huge......think that it is a 'keeper'.
Sentiment: Strong Buy
We'll see what happens but I think that there is little or no chance that the dividend will be eliminated and that when an announcement is made it will be shareholder friendly..