Ann: EMS division secures contract valued at up to A$202m, page-22

@tony123 : "looking at the chart,looks like s screaming buy"

This is the problem with charts, they say "oversold" and "screaming buy" but those evaluations are only valid against a background of unchanged fundamentals. The fact is that the share price reflects a reasonable valuation for this company based on a number of factors:

1. BG (Ben Greene, founder of EOS) is the visionary behind the defence and space divisions of the company. Based on these technologies the company developed a way of communicating at optical wavelengths with satellites using lasers at 1/1000 the power conventionally required while carrying 100x the bandwidth of conventional radio wavelengths. The company then embarked on an ambitious plan to establish a medium-Earth-orbit satellite constellation that would revolutionise global communications. See announcement of 24-Nov-2020 "SpaceLink Webinar". The company made a number of acquisitions in pursuit of this plan. Customers and infrastructure developers didn't pile in to fund, build and use SpaceLink. The company had to abandon the project and write off the sunk costs. This was a serious blow to the company's credibility and financial state. The company also quite clearly lost focus on its lucrative defense unit.
2. For a company of this size it was enormously top-heavy with multiple CEOs, and multiple boards, with BG on every board as a kind of Uber-CEO. It's also pretty clear that it wasn't easy to disagree with BG, as evidenced by the revolving door of C-level positions as sensible and clever people clashed with and were crushed by BG. The cost of maintaining this bloated management stable, plus the costs of recruiting and decruiting members is far out of proportion to the financial level of the business. The senior management turmoil also shredded much of what was left of the company's credibility.

The turn-around results from:

1. Abandoning StarLink
2. Implementing a strategic review resulting in moving BG out of executive command into a more strategic and research focused role.
3. Rationalising the management structure.
4. Refocusing on what earns money: defense, and EM Solutions.