Easter Bunny?

Down another 35% since last I had a look at this stock.

It is unbelievable that this just keeps being accepted by shareholders. For years now we have heard on this forum things like ‘surely it cannot go any lower’, ’this is a great time to buy/leverage down’  and invariably the share price tanks further.  Doing the same thing over and over again expecting a different result is just not going to happen - deep down inside, I suspect everyone knows that.

Particularly the people that have been here for 10+ years; surely, you do not believe that, realistically, this is going to turn around?

The company used to have a good first mover advantage but that is now well and truly gone. The company used to have a decent strategy but that also seems to be gone (for the record: trying to sell as many scooters as you can is not a strategy!).

Ultimately, companies are run by people and this company is one of the clearest examples of “mismanagement” - this should be a case study for business schools going forward. The big and over riding problem remains having an incompetent board. If you do not have the right people at the top, nothing is ever going to change. I have given my views on some of the directors in the past (for some of those who had board positions other than the VMT gravy train, they have recently been removed from other boards). I know that if no shareholders with money at risk is prepared to act, nothing is going to happen. To me, it just beggars belief that nobody with $ at stake is motivated enough to try to change things. Ok stock for traders with the occasional pump and dump for 5%-10% but not for those who hold in the hope to see this company go anywhere.

Here is my prediction for over the next 18 months if the board is not replaced:

• There will be no substantive sales increases;
• Competition will be fiercer and VMT will not be able to counter that (or even find ways to respond effectively to maintain the status quo);
• The board will give more “blah, blah, blah” in the quarterlies without delivering or being held to account by shareholders;
• Future capital injection will be required (yes, I know there is enough cash at the moment)

So, my further prediction is that ultimately, another capital raising will dilute every holder to make the current share price look very attractive indeed.  Most likely this company will go bust (despite the current cash position) or go private and all current shareholders get done over in the process.  On the bright side, for those who have been here for 10 years plus at least, within 2-3 years you will be able to focus your energies on other investments.

Good luck to all holders (and I think I have been saying that for the last 5 years or so) - I sincerely hope you have some luck or find a way to motivate a group of shareholders to take some action.  

I hope the Easter Bunny is good to all current shareholders…because VMT is only good to the directors.