Ann: Trading update, cost reduction program and strategy refresh, page-198

Right here and now, I’m inclined to agree with Thunderhead1’s post below.

https://hotcopper.com.au/posts/67726771/single

I’ve been calling for a change in the KMP of the business for a very long time which has since occurred.

I believe the new KMP deserve an opportunity to turn the business around. Whether they’re able to remains to be seen.

As I’ve said before, the previous KMP were fast asleep on the gravy train while the AI world was changing around them which has left the new KMP team with a monumental challenge.

Personally, I only invest in businesses that have strong ROE, ROIC, have strong balance sheets, throw off a lot of FCF and have a bright future. I’m not a contrarian investor because the trend is your friend and the market is seldom wrong.

At the moment, APX doesn’t tick my investment grade boxes and is just another turn around story which seldom occurs.

That said, they’re in the right space. The question is whether they’ve missed the boat or not. Time will tell but it’s a watch list case for me as I only invest in companies that are in an uptrend and avoid those in a downtrend.

I’d rather avoid downside risk at the expense of missing out on some of the initial upside.

All imho so please DYOR.