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Strategies & Market Trends : Value Investing

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To: petal who wrote (66435)2/6/2021 12:04:09 PM
From: E_K_S  Read Replies (1) of 78717
 
Too much 'Political' Risk for me. Just like any bad management, you have no control over Political Risk.

FWIW, US is supposed to have 'The Rule Of Law' for companies and business contracts that can be enforced. Sometimes I wonder if that is 'always' the case ( Google/FB/Twitter and/or other very large Corporations vs the individual/shareholder).

One example is AHT management suing an activist investor for

A letter to AHT stockholders accuses AHT of value destruction, conflicts of interest, dilutive actions, and "the absence of a viable corporate strategy."
Then this law suit by AHT management

"The lawsuit filed last week by AHT is baseless and we intend on vigorously defending ourselves. This action appears to be a blatant entrenchment maneuver intended to disenfranchise Cygnus and insulate Monty Bennett and his boardroom allies, who have demonstrated a flagrant disregard for stockholders and their rights for years. We contend that the incumbent Board has irreparably impugned its credibility by once again weaponizing litigation in an attempt to silence a sizable stockholder and undermine corporate democracy.
So, at least we have the rule of law to settle disputes but sometimes disenfranchises the individual shareholder.

In companies I have owned in the past 20 years, I have had (1) Bankruptcy, (2) environmental law suits (asbestos: Halliburton-HAL, Owens Corning-GLW), & Honeywell-HON) among others, (3) Fraud (Enron), (4) Patent litigation and (5) other company specific litigation. In all cases, these were/are company 'event' issues that destroyed value.


The investor must always evaluate the potential of specific company risk.
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