Not sure of the implications if any for the shareprice. Glad to see Chapa gone as I suspect he has just been looking for an exit ever since he used the sale of half Axon to CGS as an exit mechanism from an illiquid and losing position. I am ropeable at the board for their decision to buy back his share. The problem for CGS is that their core business can be quite profitable in the good years but is not scaleable when they try to increase business.The costs often precede revenue as they increase the headcount, then when things go quiet they are left with a too high cost base. Hence the yoyoing profitability. This is why they have been trying to build another scaleable arm such as Axon (failed) and Cognigram (looks shaky). The new venture (name escapes me atm) sounds promising but then so did the others. Obviously as a SH I hope it succeeds but my faith in the board has taken a hit.
Lets hope for the best.
CGS Price at posting:
29.5¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)