Bob Moriarty
Archives
Aug 25, 2010

A month ago I wrote about how the "management" at EurOmax (EOX-V) has been mismanaging the company. The company has a burn rate of $500,000 a month, BEFORE legal fees and is spending about $16,500 a month on actually advancing projects. Basically the entire company is being run for the benefit of management to the detriment of shareholders. Yesterday was the annual meeting and "management" proved my point.

EOX has about 120 million shares. 69 million of those shares were voted to dump the entire board and to install a new group. A mere 26 million votes were counted to retain "management". 73% of voting shareholders want new management, 27% are OK as things stand.

The concerned shareholders released this press release this morning. After losing the vote of shareholders by an overwhelming percentage, "management" wants the courts to sort it out. "Votes, we don't need no stinking votes." Needless to say, their perks and salary and outlandish spending continues until the court dumps them or the company runs out of money first.

The excuse given by EOX Chairman Robert Power was that the company wants to throw out the votes of their biggest shareholder, Anthony Patriarco and any votes solicited by former CEO John Menzies. The only logical problem with that is that if you throw out those votes, "management" would still lose.

According to Power, he wants "to ensure that shareholders are able to make a fully informed decision." I agree. So here it is. The clowns running EurOmax have totally screwed shareholders as long as they have been in power. Against odds of a thousand to one or more, shareholders have managed for the first time that I am aware of in years, to actually vote to dump incompetent management.

I've heard hundreds of stories from shareholders of various junior mining companies about how they feel that management doesn't give a damn about them and the companies are being run strictly for the benefit of management. It's true. Most juniors are run to generate a paycheck for a bunch of clowns who would otherwise be on unemployment. When you consider buying shares in a company, pull up a three year chart and compare it to Press Releases announcing the granting of yet more stock options to management. It's a rigged game, rigged for the benefit of the insiders who hold the reins.