Well true but if they don't sell well could go down?
My point isn't really that. Livewire doesn't know anything about anything. They were pumping the stock at $1, their sentiment just follows the price. You cant make an investment decision purely based on some product launch into a hyper-competitive market.
My point is the existing strategy was bad, and new people are now in charge. They massively over-hired, everyone in the industry knows that. The costs are way too high. You can see SGA just goes up in a straight line, unfortunately they didn't grow into that expense base this year. My hope is the current CEO, who btw was an equity analyst at Macquarie and should know what the market wants, can run this like an actual business, carve out costs and prioritise the more stable revenue lines.
If they can do that, 30M MC (ex cash) is a steal because these are good businesses when run efficiently. If they keep going down the same path though, its a sell. Looking forward to next results and commentary form the new CEO, ill be out if there isn't a major shift in tone.
PLY Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
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