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What conclusions should be drawn, then, about Gary German the pilot and Jaguar’s BOD as co- pilots? Will their flying skills deliver strong shareholder value to Jaguar investors?
As of today’s close, it appears that shareholder value rapidly approaches a defining moment. Is there recovery and ultimate success ahead, or are we witnessing the beginnings of a bone crushing death spiral?
The truth is Jaguar stock traded well over $8 a share with the news of a proposed 9.30 offer last November, and today, April 19, 2012, the stock closed at $3.07.
To be sure, even the best pilot encounters headwinds and turbulence. Crucial, then, are his support staff’s skills at managing fears and expectations. Do they know how to calm nerves and reassure nervous investors? Has this Strategic Review process gone smoothly or are shareholders unhappy with how things are proceeding? Passenger revolt can be as dangerous as the original turbulence.
And what is the real story about the poison pill?
We acknowledge that Jaguar Mining continues their relative sequestration in their Strategic Review, with the stated ultimate goal of maximizing shareholder value. So, to be fair, we must wait to see what the final review says. However, if Jaguar believes going it alone with their balance sheet is the best way to enhance shareholder value, rather than selling the Company, then I believe it’s time for Mr. German and the entire BOD to step down. Once a company goes public, then management’s fiduciary duty is to the shareholders. Mr. German and the BOD would have a tough time arguing they are promoting that agenda with the stock trading at 3.07 when a 9.30 offer was discussed.
Until further and final word from Jaguar’s team of pilots, then, shareholders should return to their seats and hang on for a bumpy ride. The Pilot clearly has trouble flying the plane even in perfect weather.
Full Disclosure: Long Jag
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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