I don't have an electronic version of the news clipping, but I did get a clipping sent to me by a friend living in Montreal. The story , as I recall, was mainly...the airing of dirty laundry...accusations that management has been too secretive, the hiring of family members, the firing of a family member, complaints that management is not doing enough to increase shareholder value. In defense was the same language used in the annual report....cost reduction plans on target,general optimism about the future with no specific targets other than productivity gains as mentioned previously.
My take on all of this is that this company is plugging along without much creativity. There needs to be new ( younger ) blood infused...better talent. Otherwise, I think the company will chug along like an old steamer in the Great Lakes.
Earnings for 1998 will be similar to 1997. The second quarter was below expectations, but I think , like you , they have a few rabbits in the hat. The warrents have expired and that's a good thing. The problem still exists that the investment community avoids penny stocks. We will need improved earnings for the stock to go above $1.00, but if this happens, the previous $2.50 - $3.00 range where the stock was in 1992-4 should be easily attained.
I continue to be optimistic. I bought some more stock in the past several months.
regards,
|
