Ann: Speedcast Ratings Update, page-9

Well SDA is in the eye of the shorters storm. The notices are whenever a substantial holder moves - either to lend the stock, short the stock or rinse and redo. You seem to imply that other companies give more updates - I don't know where you get that from - maybe LIC's but this is a calendar year company so on the 27th August it gave you a huge update including the presentation which was 41 pages with every conceivable understanding you could want for where they are and what is needed to be done to restore the company to good health. As opposed to other companies they actually did renew the board of directors - the CFO departed and they outlined the challenges.

In my opinion, the company made huge mistakes - They should never have piled on debt as they did in the acquisitions and should have raised capital when the share was over $4.00. The CFO has agreed to depart the stage and I personally think that is correct - someone needs to face the music and take responsibility for this mess. I am happy with the recently announced changes although I was a bit uncomfortable with the departure of a key person in the mix.

Reality suggests that with most of their debt available until 2023 or 2025 they have time on their side.

I don't see many if any companies other than those that are high growth no profits trying to record every milestone.

We have had two months since the half-year and now they announce the changes in personnel - They say they are making progress on some of their objectives. I would have been very surprised if the could say any more than that. Always remember that all they can do now is measure performance at the calendar year-end. They have taken a $154 million hit to goodwill but over $500 million remains - that value will be tested as at the year-end. Only then will they be able to verify if they have turned this around. In reality, if they have to write more off they may be technically in negative equity and have to raise funds anyway. Goodwill, in my opinion, isn't really a great asset as its only worth something if someone else sees value in the business. As an asset, it generates zero and when auditors start reviewing its valuation it is always with the objective of reducing the value.

This has become, in my opinion, a high-risk play - that was created by management increasing debt and taking on unnecessary risk to the balance sheet rather than raising capital and now becoming the shorters plaything and not wanting to raise capital at these levels.