Forum Archive Index - October 2000

["Graeme Tangye" <gtangye@paradise.net.nz>]

Can't agree with you Philip.

 

The board stuffed up big time, evidenced by the huge fall in share price. This is largely caused by the very high level of cash raising and the very short time frame. These are things the board has had total control over. I am not aware of any new debt in the last year. There is no reason, other than board level misjudgement, why this money needs to be raised at such short notice.

 

The board has caused the price crash, that has seen around half a billion dollars removed from their shareholders pockets. This opens up opportunity to outsiders to move in and benefit. It is not in the interests of current shareholders - yet the board has consistently stated that that was their objective. That makes it a failure in my book.

 

From where we are now, the capital raising path is probably the only option. But the board must take responsibility for getting the company where it is now. A more orderly capital raising would surely have protected shareholder value - that is where the board has failed.

 

I called the Fletcher 0800 line and asked for an explanation of why the company thought that the share price crash was the best outcome for shareholders. The recommendation from the company was to call a sharebroker. Why is the company suggesting I sell at current prices? Do they just not want me on the register?