financecaptain wrote:What to do ?
A case of majority shareholder feel that current mgt did a poor job. Perhaps the new mgt can do a better job. As long as majority shareholders' stakes are substantial, their interests should be align with minorities. Concerns are if the stakes are not substantial, majority shareholders only want to milk company at the expense of minorities.
Not vested. Do not like this type of business because profits depend on mgt's ability to read steel prices well. You stock steel correctly you make a lot of monies if not you lose. Not much of a business franchise right ?
In any case, I see it as a speculative grade investment. You either win big or loose big as a minority.
that's another interesting viewpoint. most businesses depend highly on management's abilities to make the right calls at the right times. But of cos there are some calls having more volatility than others (eg. steel prices, property cycles, ship-building cycles and many more).
Business franchise - even bad management can earn profits. Today its really an eye-opener to fully understand the concept about business franchise. Imagine if I am the CEO of a company (i plan to invest in), and I still can earn profits despite knowing little about the industry, then that is a great business franchise!