News: SRF Surfstitch says Sam Weiss to succeed Howard Mcdonald as chairman, page-49

Depends how you invest. This is one of those high risk high reward turn around type plays.

They have scaled back the swell operations because the us market is just too competitive at the moment. The brexit will have been bad for surfdome operations in Europe. I have no idea how Aus operations are going. They have bought a turnaround business in surf hardware and have to manage that in addition to the rest of the businesses. All sounds bad right! It is buuuut its 20c a share at the moment. Company will not go bust they have cash in the bank even if their forecasted loss is 5x the guidance.

I took nice loss on my original holding but I have build up decent position here and I am prepared to weather the storm on this one. The company is still the best online retailer in Australia and I have always found dealing with them to be really good (I originally bought in biased on good consumer experience). I am betting that somewhere in there is a highly profitable business. It is very possible it might take a few years to turn it around but online retail is supremely flexible which llows you to be dynamic and quickly adapt to market conditions.

liquity is still very low so (way too low for my liking) so just be aware if my you won't always be able to make a quick exit but that's how big waves are!