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Cash Store wearing out welcome with investors
Cash Store wearing out welcome with investors
(Peter Power/The Globe and Mail)

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At Cash Store, small steps in the right direction

Short-term lender Cash Store Financial Services Inc. is taking some small steps to mollify upset shareholders, but still has a long way to go.

About two weeks ago, mutual fund company Montrusco Bolton started a public campaign for changes at Cash Store, saying “enough is enough” after the stock fell by more than half in the past year and dividends vanished. Montrusco put three proposals forward that will be voted on at the company’s annual meeting on Feb. 7. It called for the company to look at selling stores outside Canada to focus on its home market, demanded that Cash Store cancel a New York listing to save cash, and finally to separate the roles of chairman and chief executive officer, both of which are currently held by founder Gordon Reykdal.