As a fellow IMF shareholder I disagree from your analysis of the VOC fiasco.
Based on what I heard on the VOC investor call this morning it seems VOC has a major bout of indigestion to the point it cannot service clients properly and that has impacted sales revenue and NPAT.
Horth and Wratten (new CFO) also admitted the forecasting process has been a shambles and parts of the Finance team did not understand 6 Long Term contracts and subsequently $33m of sales revenue must be re-allocated to future periods.
Some of the other issues relate to timing and extra integration expenses that will eventually disappear.
With major acquisition indigestion, a new CFO, poor operational forecasting (that they now claim has just become apparent), a Class Action is unlikely to succeed.
For a CA to succeed a litigant will need to prove that VOC deliberately mislead the market. VOC's defence would be "we believed the previous forecasts were true".
To some extent there is the principle of 'Çaveat Emptor' when it comes to investing in shares.
The greatest risk now for shareholders is a low ball offer from Private Equity.
VOC Price at posting:
$2.49 Sentiment: Hold Disclosure: Held
