Fed government spending in IT has all but dried up.
Most corporates are deferring IT projects and capital spending.
OKN has retrenched approx 400 staff in Australia and I hear more are expected to follow as the bench is quite full. consulting companies are reducing rates big time.
I hear that OKN is undergoing a restructure. This will no doubt bring in added costs.
All of this will impact on revenues and margins. I expect the next dividend will be as sparse as the one just announced.
I agree that current valuations are not justified, but I think the share price will come under more pressure as time progresses. this will mirror other stocks on the ASX.
I wish all the holders luck in the coming months.
Al Baby.
OKN Price at posting:
58.0¢ Sentiment: LT Buy Disclosure: Not Held
