Hi @Tradingasx, I’ve enjoyed reading your views on other threads...

Hi @Tradingasx, I’ve enjoyed reading your views on other threads but I’m not so sure this one is all that simple for EML. If a stock is making 52 week lows people might try to mis-apply the Warren Buffett ‘discarded cigar butt’ approach and get a few last puffs off the stock. However doing so likely underestimates the core reasons as to why the stock is sitting at 52WL’s and certainly ignores Paul Tudor Jones’ comment “the trend is your friend”. I also remember reading Michael Burry’s comments on stocks making news lows and how they become a self-fulfulling prophecy – every entrant in the past 12 months is in the red, so people want to scale down / sell out before it drops further – which in turn makes it drop further.

The general behaviours on the EML threads remind me very much of the APX threads – and I’ve followed both companies closely since early 2019. Both have had people trying to judge the company solely on financial metrics, calling “great value here” and so on, all the way down (in APX’s case, this was from $20 down to $6 and for EML, from under $4 to now under $1). Sure, sooner or later someone will be correct, but in both cases for these companies, trying to value them on metrics alone is a dangerous game. The sentiment is totally shot out, and considering there’s 2,400 other stocks on the ASX to consider, I can understand why they keep making new lows.

To me (and evidently others on the thread) the new MD/CEO appointment looks a bit like a play towards PE and taking the company private to try and resolve all its woes. You’ve pointed to the new Correos deal but it’s actually part of the problem – that deal has chewed up a large part of their growth cap imposed by the CBI. For all of those reasons, I still thinks this goes lower. I remember saying that at $3.00ish when all the bulls were yelling “oversold, weak hands, big players manipulating!" etc, saying it would be back above $5 in no time, etc. Perhaps I’ll be wrong this time, but this company remains shrouded in complexity and uncertainty – two things the market hates. Good luck.