Well - I think they wanted to prove, and to be sure that they were "not another McAleese". I think they now have done so - based on today's announcement. A lot of the resumption of services is factored in already.
Reading between the lines - am wondering what "impact" means. I assume they are talking the financial impact which is a one off. They will possibly have implemented some new rules and standards etc. Can we assume that the impact is short term only? I would think that if there was any market sensitive information stemming from the investigation, other than the financial impact which would take time to work out, that this would already be announced.
So I think TPI's valuation should be relatively unchanged by the very unfortunate accident. In fact - management may have demonstrated something positive in the way that they reacted, especially to their drivers and the community. Probably TPI's customers will be, on reflection, satisfied with how this situation has been handled, and there will be no loss of business. It may be possible for TPI to point out how they dealt with this terrible issue and actually win some new contracts.
This stock had already been sold down - so it is very fortunate from a trading perspective to be able to get in here. The NZ sale has left this a very low risk business.
GLTA
TPI Price at posting:
91.0¢ Sentiment: Buy Disclosure: Held
