Mr. Harper,
Real frustration comes from another source, did it ever occur to you that riding the management bashing wagon only serves the sinister purpose of those suitors like Eco who are trying to steal the company from you. Facts : did you know that DB and Steen, namely the problematic North American Companies, are now headed by a new CEO, an ex-Chicago Bridge exec, a professional engineer with 35 years in construction and fabrication?
Did you read the recent releases that DB and Steen have been reorganized in the same model as the efficient and profitable Australian sub? Did you know that DB has now booked its fabrication capacity for 1998 and construction contracts reported put them ahead of last year. Did you know that in 1997 DBC wrote off everything under the sun and DBC has substantial recoverable claims which don't appear in the financial statements? Did you know DBC top management has moved out of operations into managing the holding and letting the pro-operators like the MDC CEO, the new DB/Steen CEO and the Davie CEO run the company and, speaking of Davie, did you know they are working on the offshore platforms and one of them is already on location being refit.
Whoever did the private placement paid $2.60 and must have acknowledged value. What is really frustrating is to have bottom feeders like Eco try to steal DBC under the pretence that they bring money and management to the table. The fact is that Eco does not have the money and for the past six months has failed to raise a nickel to do the DBC deal. They have failed to do so because their own operations are stretched out all over the place and their financial results are not out. They're not out because they are probably trying to find a way to make something bad look good. Eco CEO has his fingers in so many pies that he would need to use his toes to get into DBC. A miracle man he ain't and he looks like a second choice compared to the new DB/Steen CEO. Eco stock is hyped and it pays them to push DBC stock down and they try to make a screwy share deal which could leave you and I holding a bag of air. It is well known that any deal that is to be made will require working capital addition, the Private Placement solves that problem. The other two companies, Eco and Roxco, have not, repeat NOT, been able to table money with their proposals. The trend among these companies is if you don't have the money to pay for it, then steal the company. I vent my frustrations at the lack of common sense and neurosis amongst shareholders. Do you really think the Bank of New York, would have made US $40 million available and an investor $20 million at 50% over market if they did not think there was value there. With all the right operating manager in place now, DBC two top bananas is no longer an issue. On the other hand, it is a nice violin string for Eco to play : "Hey guys" says Eco, "you need to get rid of management - they are responsible for all the bad things including World War III, we will step in 'cause we're great managers and all your problems will go away, and besides, we have to tell you this because we have no money to bring to the deal in any event". Starting to sound like an echo form the defunct Kuhns committee. It also reminds me of the old trick we used to play as kids, "Quick! Look out the window" and as the unsuspecting shareholder is made to concentrate on evil management Eco reaches over and steals the piece of cake from his plate. |
