Hi Jamwolf,
Probably a bit flippant comment on my behalf but they aren't paying as much in divi's and the capital loss is huge (from my portfolio) and my view is they need to stem all losses, jettison any businesses that require investment to make a profit and focus on their core Oroton business in AU/NZ where the brand is known.
The two point below are from the last HY report as their TARGET:
Reduced international losses of ~$1.5m (1) (HY14: $1.8m) driven by improved results in all markets and wholesale in China. Malaysia is now cash-flow positive
Continued focus on reducing losses and maintaining growth in all markets
So "reducing losses" is the target - not eliminating them? They are saying the Asian/International business will continue to make losses even if they make their plan? How long will they need to take losses before they Asian stores make a profit? No guidance on that yet except an "11% increase in sales" but over what base??? It doesn't help us to decide anything it just looks like progress.
I think they need to get their dividend back to the old days and that will determine the share price. Right now with these losses we know they can't pay more in dividends so the market is pricing them appropriately.
I am saying sell because that's what I should be doing. I've made a 60% loss so far so I figure I'll just leave it there for now and I don't need the money. I can't say BUY because nothing I see makes me think things will improve. Having said all that, killing off Brook Brothers was a good move in the right direction - they can't have GAP, BB and the Asian stores all bleeding cash and funded from the AU/NZ Oroton chain.
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