re: new com's contract Thinking laterally - if the Comms Division is becoming so profitable, and still generating more dollars than the Traffic Division, then what is so good about selling it off? Why not keep it in the fold, maybe spin it off as a separate entity under a group umbrella? Perhaps Redflex Communications and Reflex Traffic Systems, both under the group aegis of Redflex Holdings or the Redflex Group?
While it is bringing in an income stream - why sell it off? Isn't that putting a lot of eggs in one basket? Having both would allow continuing diversification and buffering against up and down swings in business in both divisions, each offsetting the other.
I'm no business guru, but I can't see the point in selling something, unless that something is unprofitable and there is the likelihood that someone else can make it profitable.
Perhaps one of the Redflex fundamental experts who usually post here can enlighten me - is the Comms Div unprofitable? Why sell it off?
Always trying to learn something new :)
I hold RDF
- Forums
- ASX - By Stock
- RDF
- nice finish!!
nice finish!!, page-6
-
-
- There are more pages in this discussion • 7 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)