(WGN.L) Wogen PLC Buy/Sell

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Author	Jupiter9 View Profile \| Add to favourites \| Ignore
Date posted	2009-10-05 20:58
Subject	Opportunistic offer
Votes for this Posting	Has no votes for or against.
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I think this offer definitely undervalues the company and is wholly opportunistic. I'd much prefer to see the management rebuild the company's fortunes for the benefit of all existing shareholders rather than take greedy advantage of a short-term weakness in the share price. The company is in a good long-term market as demand for and scarcity of specialist metals is likely to increase. It all stinks a bit and I've no doubt that the valuation will have been heavily based on the September 2008 accounts, which would have included very large write-downs of inventories. It would be very interesting to know what the net asset price per share is based on current valuations of inventories. Sadly there is not much that can be done about it. It's a big danger of investing in small companies with large management shareholdings. You'd think this would align management and general shareholder interests, but unfortunately it also gives a cynical and greedy management the opportunity to screw other shareholders - especially if there is no large institutional shareholder to effectively challenge them. I certainly wouldn't back this management team again - they just aren't trustworthy.
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