There's no question in my mind when it comes to turn-around strategy.....some words of reassurance from the company itself. I've assailed their Investor Relations personnel for failing to arrange meaningful risk-averse balance when it came to announcing expectations not founded in reality, witness management versus the BOD and conflicting yields/distributable cash flow.
There would undoubtedly be a resurgence in terms of publicly perceived valuation if only the powers that be were to put out a statement explaining the obvious disconnect between leadership and the BOD which normally operates behind the scenes.
The regrettable circumstance would likely have been averted had management checked with their legal beagles before going out on a limb, declaring their hoped-for cash flow expectations. In this instance, I deplore the corporate failure but fully support the BOD's determination to keep a tight lid on expenditures, given that we're not yet out of this difficult time for oil-related businesses.
When I was employed as Director of Investor Relations for companies prior to retiring, I received lists of pertinent information on which to base my press releases, coming directly from the President of the traded company. I then pieced things together, and reworked and re-reworked and even then some---until I had something resembling a finished product that I'd not be uncomfortable presenting to the President for his approval. When he was satisfied, he would then pass my piece on to the legal department to be certain he and I weren't failing to recognize a wire just waiting to trip us up. It was an entirely defensive posturing, of course, but very necessary.
Once getting past legal, I got to make any last minute changes, got those approved and then the material would be submitted to the newswire service responsible for handling ORs.
The process called for arduous attention to detail from us all but it kept us free of vulnerability. I've not seen evidence of this level of careful attention on the part of NGL. However, I don't know the nature of the company's investor relations department. In fact, I don't even know if NGL manages such matters internally or relies upon an outside IR company or individual. This is something I hope to look at closely over coming days as I have every intention of contacting the company regarding what I deem an obvious failure. At this particular point in time, I suspect NGL has not seen fit to properly organize procedures involving investor relations and operational leadership and it is likely this area responsible for the huge drop in valuation. It was preventable.
