Q: With respect to a plan to sell ENGH, a recent question said “ Recently Ceo left,and in my humble opinion,the whole Board should be gone too.” In fact it was the president Vince Mifsud who left and the CEO Steve Sadler is still there. Personally, I am adding to my position in ENGH as it is hard to find asset-light businesses with no debt, lots of cash and generating more each quarter, paying a 3.33% yield and with a 15% return on invested capital. IMHO investors should focus on owning quality businesses and trust management to prudently grow the business. Who knows why Mifsud left? I trust Mr. Sadler to wisely invest the surplus cash as opportunities arise.
5i Research Answer:
Yes; we should have noted that. As a rule we do not edit questions as written in order to save time but this one of course should have been. We did (at least) still make mention of Mr. Sadler in the answer. Investors often get frustrated with stocks, but this alone does not make them bad investments. In a different type of market, we might expect the stock to perform relatively better. It is cheap vs peers, and as noted financial risk is low.