Hi all, I have recently taken a position in COO during this SP weakness and management changes.
As has been stated before, both CEO's were on short term contracts and due to expire in December. Both had specific things to do. From the announcements, I take it that one has most likely failed, and the other has succeeded. They have resigned a couple of months before the end of the contracts, big deal.
From the latest announcement: "David Tonuri focused on driving changes to the business. This has created the necessary momentum for the company to strongly reassert itself within the pharmacy technology and ecommerce sectors."
Sounds positive to me. Lets now find a CEO for the long haul.
I put current share price weakness down to the fact no final dividend was paid and that impatient holders are selling out for that reason. After all, dividends are king at the moment. IMO, the previous dividend payout was unsustainable when the focus had shifted to 'growth'. I believe that, and would like to see dividends continued at either $0.0025 cents per half for a total of $0.005 cents per year, or one final dividend of $0.005 cents. Essentially, that is what management have implemented at full year, and if that continues, buying in today would give a yield around 4.5%.
With sticky revenue, a bulletproof balance sheet, positive cash flow and a war chest of cash, I see exciting times ahead.
COO Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
