I accept loses in startups or development companies are part of the teething problems or the GFC but this lot have been around for a long time and accumulated loses by poor management decisions. Last year they made $2m and this year $16m from combined $500m in sales while paying themselves millions in pay and perks. Having $100m sitting in the bank isn't impressive. If money isn't working it's losing it's value daily as inflation and fees eat away at it, plus you leave yourself open for a TO at a low ball price. Shoring up reserves with a big bank balance and low market cap is like a chip to a seagull. Cut out the grossly overpaid MD and board and a suitor would immediately increase profits by $2mpa plus have $100m in the kitty. Unless of course a TO is what u have in mind?
Start paying a dividend and the SP will rise and they become an attractive investment for funds.
SLR Price at posting:
48.5¢ Sentiment: Sell Disclosure: Held
