Hello All,
This message will not have any hard substance other than the fact that I will be supporting the new slate of directors and yellow proxy. Over the last while there has been considerable banter about who to support and why. I've been around for a while - see my history - so this is not some pumper or dumper like others that have become apparent recently. I've tried to see both sides of the debate.
So far the performance of FNC is dismal (forget comparisons to other companies - it is what it is). In exploration companies like this, the BoD is really the only thing we can trust in as shareholders. What is the BoD supposed to do? I would argue that the BoD has the fiduciary responsibility to create and conserve value for shareholders in times of opportunity and uncertainty, respectively. The most readily accessible measure of value, but perhaps not most reflective, is market capitalization.
Has the current FNC BoD been given a chance at creating value for shareholders? Has the current FNC BoD maintained value during relative uncertainty?
In an objective sense I think we can say that the BoD has had ample opportunity to create value as they have been in place since inception and have had as many opportunities that have been made available to them (whether through pro-active or passive actions). So from this perspective it is clear that they have failed shareholders.
They also fail on maintaining value during uncertain times. One could argue that many companies are suffering in terms of market capitalization - but I counter that these other companies are failing too (and may have pending BoD changes - but I digress). I would also question why we would want to find comfort in other companies lacklustre financial performance. Do we not want to outperform other companies? Shouldn't we be asking how FNC could become an outperformer? I do not think a BoD that is satisfied with the status quo is actually carrying out their fiduciary responsibility.
To paraphrase Aristotle - Excellence can be what you repeatedly do - and I add that so can failure. In the case of the FNC BoD, I do not think there is any change in market capitalization that demonstrates success. So FNC BoD definitely has not sought out excellence - nor attempted to repeat it. The only failure that I can factually cite without conjecture is the diminishment of market capitalization. In this regard - they have repeatedly failed and continue to do so.
In all forms of leadership, you need to have the trust of those that follow. We see it in politics, sports, and closer to home - mining exploration companies. Lose the trust - for reasons that may be in your control or outerworldly - and you lose the opportuity to be a leader. And that is what it is - an opportunity - a privelage - it is not a right.
The current BoD has lost my trust for failing to maintain and increase market capitalization. The sorry truth is that WE as shareholders are limited in our ability to incite change, with the ability to select alternate BoDs rarely afforded to us. Pass up on this opportunity and let the poor track record continue to speak loudly - and importantly recognize that any future failure must also then be borne on your shoulders.
WW
