Market's view on Frenkel Topping

Published on April 2024

  • Stock watchers note that executive directors are highly compensated with salaries and share options, with significant payouts compared to the company’s profits.
  • Concerns are raised about the company’s disappointing share price performance and questionable governance practices, including the appointment of Chris Mills as Chairman, despite his involvement with numerous boards which may indicate over-boarding.
  • Observations are made about the major investor increasing their shareholdings at current low prices.
  • There are discussions on the company’s deteriorating earnings per share and its strategy of raising capital from shareholders to fund acquisitions, which has led to reduced profitability and share dilution.
  • The company’s participation in various investor webinars and conferences like Mello2023 is highlighted, indicating an active engagement with investors.
  • Financial updates reveal that while the company is experiencing solid growth in revenue and EBITDA, the share price lacks positive momentum, suggesting mixed investor sentiments.
  • The strategy of frequent fundraising through equity issuance has been criticized, especially when these are not open to retail investors, causing frustration among smaller shareholders.
  • Positive actions noted include significant share purchases by North Atlantic, which may instill confidence in other investors.
  • Concerns are discussed regarding potential future disappointments in assets under management due to market conditions and lack of clarity on acquisitions, impacting investor confidence.
  • General dissatisfaction is expressed regarding the governance, especially with past leadership and ongoing concerns about new board appointments and their implications on company strategy and investor trust.
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