After releasing the HY results they said something like:
"Given our strengthening financial position and operating performance I expect to resume dividend payments to shareholders when we announce our full year results."
And they have come up with a loss of $10m from continuing operations.
Now they say:
"The Board is confident that the company will return to profit in 2015 financial year following a re-alignment of the business structure with greater focus on the key drivers of the business."
I don't share their confidence.
Silly mistake on my part. Note to diary: Ignore press hype on gimmicky products. And if "entrepreneurs" are reported as buying stock, avoid them like the plague. If a company is reduced to plugging their stock at show biz cocktail parties, there's a fair chance they have no real substance.
The only remaining question for me is when to hit the sell button. I don't see a need to panic just yet, because they are still (just) cash flow positive, although I note a reduction in OCF and a reduction in interest cover from 2x to about 1.5x, despite the reduction in debt. I think the market anticipated this crappy result, and today so far there have been no trades at all (pretty well summing up interest in this stock). So it's a wait and watch for me. But I will take the loss and dump on any further serious weakness.
FUN Price at posting:
6.5¢ Sentiment: None Disclosure: Held
