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Ino Mario Grech's avatar

What you say is reasonable. He's definitely the key person behind the whole operation. So you could be right. But there's a slight possibility that the controlling shareholder could be using the company as his personal ATM. Maybe I'm being unfair.

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Douglas Ott's avatar

Again you're right to be skeptical! But, that's a whole lot of work over the past ten years to have your own ATM. But if all the hard work is in the past and from now on its just cashing in checks, then let's stay away from this business and CEO!

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Ino Mario Grech's avatar

To me, Nahmad's compensation package of $6m (including stock awards) in the context of the company's net income of $5.6m explains a good part of the low EV/EBITDA multiple and the market’s lack of reaction after the Girbau acquisition.

Incidentally, thank you for your thoughtful and interesting posts.

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Douglas Ott's avatar

Comp package does sound excessive, but I'd be willing to give him the benefit of the doubt if there is an actual story here going forward for the rest of the shareholders. And perhaps its not excessive given where the company is today versus where it was ten years ago? I don't know yet.

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