Obviously not happy of the severe share price fall however having read the Chairman’s update (the 3 page Ann not the preso) without any noise this morning, they are expecting a 20% drop in H1 18 reported NPAT which includes one offs being litigation costs and signing of the new CEO costs.
So in theory, the $3m drop in NPAT one could assume roughly maybe half $1.5m is non recurring.
So then underlying EPS could only be down 10% if this.
The question I have is why hasn't the company told us how much is one-off?
Is it due to a predator lurking (the company has appointed defence advisers)?
The best way to thwart a potential takeover is to make the situation look worse than it really is.
As management hardly have any shares I guess they are incentivised to keep their jobs.
Food for thought I guess.
MVF Price at posting:
$1.27 Sentiment: Hold Disclosure: Held
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