I said just after Christmas in this post (
Post # 21611090), "Managers will manage the business they're comfortable with and if they're handed one that's outside their comfort zone they'll change the business until they are comfortable again."
At that time I believed the marine cable would be completed because it was funded, access had been organised, and there were contracts in place that would substantially cover the operating costs. Who would have thought that the new managers could unravel something the size of Vocus/M2 in less than 12 months?! I suspect that behind the scenes the management are deep in crisis. When people are in that situation they will hold all the more strongly to what they feel comfortable and competent with. I predict that tomorrow will bring one of:
a) Strategic review, followed in November or December by an announcement that the ASC is cancelled (or sold).
or
b) An announcement that the ASC is cancelled (or sold).
In another post (
Post # 22231820) I made this statement: "Even if the current management realise they've made a strategic mistake it's too late for them to do anything about it. The men who gave Vocus that capability are gone."
And this: "For my money, this is a sell anywhere north of $3. The only thing that will change my mind is a full year result under the new management, which means August 2018."
I'm inclined to think now that I gave the new team waaay more credit than they deserved! At this point I can't even think of a number that I'd be prepared to invest at.
