LGD 0.00% 30.0¢ legend corporation limited

Thinking about it a little more. The MD controls the...

  1. 1,524 Posts.
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    Thinking about it a little more.

    The MD controls the Shareholding +28% yet he is bringing in consultants to tell him how to run the business???

    I suspect he is under significant pressure from Alex Waislitz (TOP) being an activist shareholder.

    The way I look at it LGD has grown reasonably well over the past few years but the make up of their business is based around imported product. With the dollar falling the pressure on raising prices in a price sensitive environment is tough.

    The options are; merge with another larger organisation or one of the same size that has more stable income and realise as much synergies as possible or sell the entire business. The second option isn't a great one as profits are under pressure at the moment.

    I suspect that TOP have a strategy and are pushing it onto the MD and board.

    I would like to see LGD merge with CMI and extract around $2m in synergies and utilise the cash in CMI to reduce leverage and then look to more acquisitions. This would see the SP move rapidly up.
 
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Currently unlisted public company.

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