Neutralnn self declares no holdings. Their ongoing passion for TNT likely stems from some other relationship (or ex-relationship) with the company. Regardless, they are right to be critical of the half yearly. Cash holdings continue to deteriorate, the current ratio is less than 1, revenue growth is anemic and earnings per share is plummeting. What is most problematical is that the company has been staggering along in this mode, essentially since floating. It is clear that strategy and leadership has been lacking.
There have been some major leadership changes in the last half. It is now time for the new CEO to do his job. Cut costs aggressively. Get out of low margin offerings. Laser focus on customer pain points. Build an IP portfolio.
Examining TNT's offerings on their web site is instructive. Managed firewall and SIEM, ok. But move it to a scalable self service model. Email filtering. Why compete with so many specialist providers including Google? You can't win, so stop it. Web filtering, ditto. I know there are IT departments out there that demand these check boxes, but they have no money. Servicing poor, legacy customers is a terrible strategy for a growth oriented technology play. Colocation is capital intensive and low margin. It is competing with AWS et al. They are clearly going to win. Stop it.
Look at trends. What are emerging and growing companies doing? What are their security needs? These are your customers.
