Everything that could go wrong for BYI, did actually go wrong!
Back in July 2016, when BYI announced a profit downgrade, I decided to cut my losses immediately. My investment thesis was being proved wrong therefore I did the only thing I knew, take the first losses. I was ruthless in selling into any kind of liquidity available. In the end, I was able to get out completely within a day.
Fast forward to now, I consider myself very lucky because had I dilly-dallied, I would have incurred much bigger losses and even worse, couldn't even get out because of the non-existent liquidity!
Reading the latest full year report, I have no confidence in management's ability to turn the business around. There are so many structural headwinds facing the company that it will be a big achievement for the company just to stand still, let alone grow again.
BYI Price at posting:
68.0¢ Sentiment: Sell Disclosure: Not Held
