let's increase our lot!, page-14

I know nothing of QMN either, but if shareholders on HC are saying there are problems with management (and I am sure HC memberrs know how to whip up a storm of discontent), then we all know a suitor buys not only assets, but management as well. I know a handful of companies on the ASX who have the following traits:

* bottom share prices
* discontented shareholders
* often in-fighting or some other problematic occurrence in the company, often made public in ASX ANN's.

Now, whether management has a role in the poor share price, or whether the share price creates turmoil- in-fighting, etc, is often unknown.

Ok, so the following happens: HC shareholders say that as the SP is so low, they must now be a takeover target. However, there are many low SP'es in the market, and some of them have great management. Plenty to choose from.

I'd reckon that those companies that have consistent issues with management will never be taken over. You can't just keep the assets and ditch management. And for those companies who are so poorly managed that they ruin the SP so as to become taken over, they might think again (I have seen one company- Viento (ASX:VIE) where a takeover has been offered because the suitor blames management directly for poor performance in the takeover papers. That suitor may now pull out due to poor markets).

If I have faith in management, I don't get too worried about share prices, because funds, etc, support them. White knights won't.