Hi Vaughn
In a more just world I am sure that all of your hopes would come true. Unfortunately, this is not Camelot and I fear that you (and I) will be disappointed. If there is a VSE investigation at all, it will take several months to complete it meaning that there will be no trading in GMD for perhaps 4-8 months. There is precedence for this but that might not be all bad. Perhaps the air will clear by then preventing the huge drop in share price that is anticipated if trading opens in the near future. If history is any predictor, Farrell will get away with most of the $3 million that he has embezzled from the company. The company could itself prevent this, at least temporarily, by filing suit and asking for a court order to freeze Farrell's assets which would be almost automatically granted under the circumstances. But all we hear is silence from our new President.Why? Because he was a director when all the embezzlement was going on.( Someone please correct me if I am wrong) He most assuredly had to vote on the issue of lending $3 million of the company's money with no security to some down and out company controlled by his boss. Current management isn't going to do anything about the situation for fear of turning the spotlight on itself more than it already is. And when and if a message is forthcoming, I predict it will barely allude to the theft of company funds and stress instead the great amount of diamonds awaiting us at Royce. And microscope or no microscope you can count on a flow of rumors about GMD and DeBeers or GMD and Barrick etc.
Vaughn, I,perhaps like you, feel that our quickest and only way out of this mess is to get a totally new management team from outside the company. But I doubt that there is any chance of this. Any new people will be part of the good old boys network. I am assuming here that current management has voting control of the company. Any new person coming in would have to agree not to seek restitution from previous management. That is the way it usually works.
Despite all of the commendable optimism coming from some participants of this thread, I see a bleak near term future for GMD and the long term, even if it manages to miraculously survive this bombshell, doesn't look so good either. |
