Even if this is a mom-and-pop small business, I think the questions that have to be raised with Doug is:
1. There has to be a "story" for future growth and profitability.
a. growth over profitability?
b. profitability over growth?
c. balanced?
2. What's the story?
3. There has to be a strategy for rolling out the story to investors. Press releases have been ineffective.
a. rollout to market makers and regional brokerages - face-to-face
b. Internet-based PR campaign
c. penny-stock press coverage
d. penny specialist brokers - face-to-face
4. What's the strategy?
5. If there's a story, and there's a strategy, what events will trigger the rollout, and what is the expected timing?
a. first profitable quarter
b. first evidence of cash flow from water park
c. next quarterly conference call
d. as soon as possible
6. He has to fix the Board. Strengthen it, make it more independent, or else people won't take the company seriously, especially brokerages. The question is not whether he should do it, but how soon will he start.
It's been my experience that brokers and houses don't get behind a stock with as much risk as this without being able to see/feel the CEO, and test his/her mettle by looking them straight in the eye to see if they blink.
Having said all that, I suppose it's possible that Doug just doesn't personally have what it takes to really sell the company face-to-face, or the story's not good enough.
The reality is that Doug, whether he wants to admit it or not, probably has a pretty good quality of life right now, and isn't very motivated. And the BOD sure isn't motivating him, positively or negatively. Everybody benefits from having a good boss. Doug doesn't have one. |
