When Armtec’s Chief Executive Officer, Charles Phillips, told the Guelph company’s annual meeting that the reason the stock dropped $10.90 in three trading days, was the weather, the recession and, did I mention the weather?
Gee Chuck, every business in Canada faced the same weather conditions as Armtec. Apparently, some are better at handling it than others.
Those attending the meeting sensed there was more explanation needed about the sudden reduction of shareholder value but it was not forthcoming from company executives.
Board Chairman Bob Wright replying to the question of why the stock tanked in three days said: “Who Knows?” Who was running the show if the Chairman of the Board of Directors was in the dark?
Boss Phillips said that he and fellow executives suffered along with shareholders as they owned shares in the company. Really? Is that why the Board approved asking the shareholders to enhance the executive compensation program?
The lame excuses and lack of operational explanation of why this company literally fell out of bed was not to be. Selling $58 million worth of new shares at $16.20 just before the end of the now revealed disastrous 1st quarter was a classic corporate two-step.
The credibility of the Armtec executives and board members has been shattered.
What investor in his right mind will invest in this company after the June 23rd annual meeting?
In those devastating three days of stock denouement who shorted the stock? Which, if any, insiders sold stock? Who knew what and when?
So many questions, so few answers.