PACIFIC CURRENT GROUP LIMITED SHAREHOLDERS (PAC.AX) CALL FOR THE MANAGING DIRECTOR PAUL GREENWOOD TO MOVE ASIDE
Announcement posted by ASI Mutual 05 Apr 2019
ASI MUTUAL IS CALLING ON PACIFIC CURRENT GROUP (ASX:PAC) TO CONDUCT A STRATEGIC REVIEW FOR SHAREHOLDERS TO DETAIL AND REPORT ON PAC’S GROWTH PLANS COVERING THE NEXT 3 YEARS. THE CURRENT STRATEGY EMPLOYED AND EXECUTED BY THE COMPANY, HAS FAILED BECAUSE IT LACKS, IN ALL RESPECTS, RIGOUR AT THE CORPORATE LEVEL. THE COMPANY'S 'RETURN DRIVEN STRATEGY' FOR SHAREHOLDERS IS INVISIBLE.
ASI MUTUAL AS SHAREHOLDER IN PACIFIC CURRENT GROUP LIMITED (ASX PAC) CONTROLS OR SPEAKS FOR 1,297,262 SHARES IN THE COMPANY.
POOR GOVERNANCE, INEFFECTIVE STRATEGIC LEADERSHIP AND EXECUTION UNDER GUIDANCE FROM THE PACIFIC CURRENT GROUP LIMITED BOARD, LED BY ITS CHAIRMAN TONY ROBINSON, IS HAVING A CONTINUING NEGATIVE EFFECT ON COMPANY’S PERFORMANCE AS THEY RELATE TO SHAREHOLDER INTERESTS.
INDEPENDENT ANALYSIS AT ORD MINNETT AND WILSON ADVISORY VALUE PACIFIC CURRENT GROUP LIMITED (PAC.AX) SHARES AT AROUND $9.00 PER SHARE. THE COMPANY'S SHARES ARE TRADING AT JUST $4.60?
ASI MUTUAL BELIEVES THE SHARES ARE WORTH MORE THAN $9.00 IF THE COMPANY WAS MANAGED BY A MORE STRATEGICALLY MINDED AND EFFECTIVE BOARD.
WHEN THE PACIFIC CURRENT CHAIRMAN TONY ROBINSON WAS RECENTLY ASKED BY A MEMBER OF OUR SHAREHOLDER GROUP, "WHAT IS THE COMPANY'S STRATEGY TO ADDRESS THE WEAK SHARE PRICE AND RESTORE INVESTOR TRUST IN THE MANAGEMENT AND THE BOARD?" CHAIRMAN ROBINSON REPLIED TO THE QUESTION, "WE ALWAYS APPRECIATE FEEDBACK THAT HELPS US IMPROVE COMMUNICATION AND WILL FEED THE POINT YOU HAVE RAISED INTO THE NEXT UPDATE WE PROVIDE."
CLEARLY THE CHAIRMAN HAS MISSED THE MARK ON THE QUESTION RAISED BY THE SHAREHOLDER. HIS SEEMINGLY OBSCURE RESPONSE TO THE SHAREHOLDERS QUESTION ABOUT THE COMPANY'S STRATEGY WAS BIZARRE, TO SAY THE LEAST.
THE CHAIRMAN HAVING BEEN AN EXECUTIVE OF THE COMPANY FOR SEVERAL YEARS, UNABLE TO ARTICULATE THE GROWTH STRATEGY OF THE COMPANY TO A SHAREHOLDER'S SIMPLE QUESTION, RAISES SERIOUS QUESTIONS ABOUT THE CHAIRMAN'S CAPABILITIES LET ALONE THOSE OF A LEADER REPRESENTING SHAREHOLDER INTERESTS.
IF THE CHAIRMAN CANNOT EXPLAIN THE FUTURE STRATEGIC POSITIONING OF THE COMPANY, IT CERTAINLY MEANS TO US, A STRATEGIC REVIEW IS REQUIRED.
PACIFIC CURRENT IS IN DIRE NEED OF STRONG LEADERSHIP AND MANAGEMENT AT THE TOP. THAT IS TO SAY, EFFECTIVE INDUSTRY LEADERSHIP STRATEGICALLY DRIVEN FROM AUSTRALIA FOR THE COMPANY'S PREDOMINANT AUSTRALIAN SHAREHOLDER BASE. NOT FROM A 'DISASSOCIATED SATELLITE OFFICE' SOME 14,000 KILOMETRES AWAY IN TACOMA, USA.
THE COMPANY’S STRATEGY, IMPLEMENTED AND EXECUTED BY THE MANAGING DIRECTOR PAUL GREENWOOD FROM TACOMA, OVER THE PAST FOUR (4) YEARS OR SO, UNDER THE GUIDANCE OF HIS BOARD, HAS CLEARLY NOT WORKED FOR THE COMPANY AND ITS LONG-TERM SHAREHOLDERS. WE DON'T DOUBT PAUL GREENWOOD IS NOT A SMART GUY. HOWEVER, HE HAS NEVER MANAGED A LISTED COMPANY. HIS BACKGROUND IS THAT OF AN ANALYST, RUNNING THE RULER OVER M&A TRANSACTIONS.
WHEN PAUL GREENWOOD WAS ELECTED AS EXECUTIVE DIRECTOR AND CHIEF INVESTMENT OFFICER (WITH GREAT FANFARE), TO THE BOARD OF PACIFIC CURRENT GROUP LIMITED, OVER 4 YEARS AGO, THE COMPANY’S SHARE PRICE WAS $11.57. IT IS NOW $4.60. THE SHARE PRICE HAS DECLINED A MASSIVE 60% EXCLUDING DIVIDENDS WHICH WERE SLASHED OVER THE SAME PERIOD. THE MARKET PRICE OF THE COMPANY'S SHARES EFFECTIVELY SPEAK TO GREENWOOD'S PERFORMANCE AS ITS MANAGING DIRECTOR AND IS A GOOD ENOUGH REASON FOR SHAREHOLDERS ASKING HIM, THROUGH THE BOARD, TO STEP ASIDE FOR SOMEONE MORE EXPERIENCED TO TAKE ON THE ROLE.
PAUL GREENWOOD WOULD BE, IN OUR VIEW, MORE EFFECTIVE, IF HE WAS TOLD BY THE BOARD TO CONCENTRATE ON GROWING (FOR THE BENEFIT OF SHAREHOLDERS), PACIFIC CURRENT GROUP’S WHOLLY OWNED BUSINESSES, NORTHERN LIGHTS CAPITAL GROUP, LLC AND NLCG DISTRIBUTORS, LLC, IN TACOMA AND DENVER USA.
SEE THEIR DETAILS VIA THE FOLLOWING LINKS…
Northern Lights Capital Group, LLC
https://adviserinfo.sec.gov/IAPD/Content/Common/crd_iapd_Brochure.aspx?BRCHR_VRSN_ID=527141
NLCG Distributors, LLC
https://brokercheck.finra.org/firm/summary/156263
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ASI Mutual urges all shareholders - to thoughtfully consider the contributions Company directors make or have made on their behalf and the quantum of value they bring to their table, when asked to employ or re-employ them.
For further shareholder or media comment, please contact:
Michael de Tocqueville
CEO-Investment Director
ASI Mutual
Web: www.asimutual.com
Email: mdet@asimutual.com
Mobile: Australia 0402.039.993
International +61.402.039.993