Gross margins have drawn in
as the market has sought concessions
yet SG&A have ramped since the Hamilton acquisition last fall.
I don't see where management at any level has conceeded any
of their salaries to offset the compression not in the proxy
I just read. Maybe this is under way who knows.
I want to see
1) Management take salary cuts until net margins stabilize,, defer to stock compensation post split
2) Travel, perks, meals auxiliary expenses suspended. IE Road shows etc...none
3) Eliminate redundant non preforming assets and or divisions
4) Maximize equipment cross utilization
5) Consolidate facilities, office space and personal
The focus of acquisitions and mergers is to consolidate costs
and eliminate redundancies while increasing gross profits,,,right?
The growing gross numbers look nice and all but if this is just a job creation program
institutional investors on a "higher" exchange will not support it so what's the point.
Furthermore the "mystery RS number" is not helping either. Bidding here is just guess
work considering the vagueness of the 1-2 - 1-20 range.
Bottom Line for Me: RS is acceptable IF the results of that action are taken to increase share holder
value near term, I mean months not years, to exploit market weakness now. If the RS is to support further dilution to pay perks and salaries I will move on. I see no reason to RS the share structure unless it's accretive to share holders. It's managements responsibility to understand and anticipate the
dynamics within their industry and adjust accordingly to protect shareholders. Let's see what comes next.
