A dead horse

Finweek English Edition - - LETTERS -

AL­THOUGH IT’S six months too late, Leani Wes­sels has hit the nail on the head. We as mi­nor­ity share­hold­ers have al­ready writ­ten off our in­vest­ments in the dead horse. It was al­ways a plea­sure for me to do busi­ness with Alert Steel’s mar­ket­ing per­son­nel, but again it was just a case of a fish rot­ting from the head down.

An­other les­son for in­vestors: Don’t judge your in­vest­ment only from your buy­ing ex­pe­ri­ence. Most bur­geon­ing en­trepreneurs have a fault line and that is they can’t see and there­fore cross the tran­si­tion be­tween a one­man busi­ness and a pro­fes­sional one. As the re­port spells out quite clearly, the col­lapse is largely due to mis­man­age­ment, es­pe­cially on the fi­nan­cial side. What a tragedy for in­vestors and em­ploy­ees, who will now have to pay the price for bad man­age­ment. as 19 Oc­to­ber and was never cleared up. What’s the pur­pose of the JSE if cut-off dates aren’t set for man­age­ments? It’s through de­lays such as this that we lose money.

Ev­ery­one is concerned about Share­max – with good rea­son. But this and sim­i­lar cases are the in­di­vid­ual in­stances that de­stroy ev­ery­thing. Now it seems as if the pos­si­ble trans­ac­tion re­ferred to in the cau­tion­ary has been aban­doned. Then it will be down­hill all the way, be­cause the vul­tures are al­ready sit­ting and wait­ing.

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