Whomever replaces the Board of Directors at the AGM will have a rescue and recovery job on their hands. The business is viable, it just needs to be in the right hands and steered in the right direction. There isn't much of the business that won't need to be looked at closely with the possibility of some degree of change. The upside? The basic business model is correct and with the right strategy, the right backing and the right team it could make serious headway and put some solid value back in to the company and the share price as a result.
Sure, the piggy bank is being emptied and will continue to be so until the current Board is removed and the value of some assets is questionable and being left unaddressed and there are some operational issues that have been left as too hard to fix, possibly the bio-asset profiles on the farms are wrong and the sales channels aren't working as they should be but those are all fixable.
As for the "corporate fees" it is hard to tell what exactly these and a range of other costs actually relate to and they may be legitimate or they may be questionable but until they are broken down and looked at closely we will really never know. I suspect there is a mix of both hidden in them and a poor CoA definition and accounting entries have results in a confusing representation of costs that is coincidentally convenient.
There are many unnerving things in the Annual Report but a closer review and analysis over the weekend may shed some light on these or confirm some suspicions but clearly the manner and initial cursory view of the latest announcements indicate Jimmy Choo Choo is more important and AHF got the minimum effort put in to it to meet compliance whilst the current board arrange their departure.
A lot of work to be done by someone soon and to get a good and fresh Board of Directors it looks like the shareholders are going to have to pay for them, one way or the other. Don't give them cash, give them escrowed equity to come on board and take this little sucker to new heights so all shareholders can enjoy the winnings equally.
Anyone up for it?...
AHF Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
