The question is how long can the Board allow the incumbent CEO to preside over a business that is destroying shareholder wealth at a rate of knots.
Having heard him pitch at a conference, it comes as no surprise to me that he doesn't appear to have the support of fund managers, sophisticated and other investors.
Lloyd Robert's resignation as the chair early in the peace was the first red flag.Since then, an opportunistic capital raising, a dearth of material acquisition activity, the absence of a clear capital management strategy, vendor share overhang and an earnings downgrade shortly after and inconsistent with the message delivered at the AGM has caught the market by surprise and left it questioning the integrity of the FY15 guidance provided. To top it off, the few substantial shareholders that were on board appear to be leaving in droves.
All in all, neither a good look nor performance. Perhaps it's time for change Mr Pittard. Time to replace your CEO (notwithstanding his shareholding - it's been done before with terrific results) with one who is capable of articulating and executing a clear and well developed strategy with flawless precision. A CEO who can gain the confidence, respect and support of the market and realise the full potential of the business. Over to you Mr Pittard and best of luck. As things stand, I think you're going to need it.
RXP Price at posting:
32.5¢ Sentiment: Sell Disclosure: Held
