Hi Greg, Debt burden is a big one hurting them, but that should sort itself out over the next 6 months with refinancing etc. After that it's a series of 1%er's adding up to cost over runs. area's like advertising, excessive management, spending in the wrong areas, wages costs, etc. Matt's inherited a problem child and will be working thru them.
The MSO's that are growing are being aggresive with pricing and particulary good with staff securing and customer service. They will grow a customer base rather than a profit, that will happen later. These newer MSO's financial reports are a sea of red largely around "start up costs" . Its not just AMA that are struggling to make profit, AMA just cop the public scrutiny.
What should AMA be doing differently? Probably not much more, just stay the course and improve with 1%ers. I dont think share price growth will happen quickly. perhaps 10 cents after Feb 29 half year report (I thought they would get there by xmas, so don't listen to me)
AMA Price at posting:
7.0¢ Sentiment: Buy Disclosure: Held
