More trouble at My Food Bag

I’m just going to leave this here. I mean, you list a company On The Market. Presumably you have a good compensation package, which includes stock and performance options. Generally the only way to get those performance options is to perform — if you stick with the company and it keeps performing you make a lot of money.

On the other hand, if resign you won’t get any of those performance-based options, because you don’t work there anymore. So it’s interesting that My Food Bag’s COO has resigned so soon after its much-heralded IPO (not with a bang, but a whimper, etc).

The COO’s resignation comes hot on the heels of My Food Bag’s chief marketing officer’s resignation in May. The saying ‘rats fleeing a sinking ship’ dervives from ‘rats fleeing a rotten house’, and some of the best and earliest investment advice was written in 1600, capturing an exchange between a member of the old East India Company and the new East India Company:

Don't suffer your Selves to be buffetted from Post to Pillar, by Pinning your Faith upon such that propose no more than to find a way out for themselves, like Rats that quit the House before it falls.
— Anon., A Dialogue Between Two Members of the New and Old East-India Companies, 1600

And more sign of the peak across the ditch — HelloFresh has bought Youfoodz* for 93c per share ($125 million in total). Youfoodz IPO’d at $1.50 per share. Presumably the shareholders didn’t think Youfoodz was ever going to be worth $1.50 per share again (or it was losing money hand-over-fist — or the shareholders could see their time in the sun was up; what with rising food prices and fierce competition from supermarkets and so on).

As of writing, My Food Bag’s share price sits at $1.33, far from its all-time high of $1.77. One suspects owners of My Food Bag have been left holding the bag. Let’s hope they have diamond hands.

My outlook on My Food Bag remains the same — it is worth at best 23 cents per share (roughly its book value, on the back of an envelope — given I have no belief in the business itself the only value is in plant, property and equipment).

*What were they thinking with this name?