- Dorel has a dual class share structure which makes it impossible for minority shareholders to exert pressure on founding family shareholders occupying executive positions to improve operational performance.
- Business performance has been in a long term deterioration for the past decade and the company is not going anywhere despite a never-ending restructuring.
- Minority investors have no visibility into the top management's performance targets and compensation decisions.
- Despite a pick-up in biking and home renovation activity during COVID-19, the deadweight of Dorel Juvenile is likely to keep this company mired in trouble far longer than investors expectations.
- Investors are caught in a trap of emotional attachment to this value destroyer.
For further details see:
Dorel Industries Inc. - Heads I Win, Tails You Lose