I believe all the existing shareholders should send an email, call or write to the management to explain why and what to do next.
Here's my email to their management:
I am a shareholder of A2M and would like to express my extreme disappointment to your management in terms of conflicting messages delivered in public.
In less than just one month ago, 18/11/2020, the CEO said the following in the AGM:
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We are maintaining guidance as advised in September:
‒ We expect Group revenue for 1H21 of $725 million to $775 million;
‒ Group revenue for FY21 of $1.80 billion to $1.90 billion; and
‒ FY21 EBITDA margin for FY21 in the order of 31%.
However, due to the volatility arising from COVID-19, and the difficulties this presents with
forecasting, naturally there is uncertainty to this forecast.
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In the last 30days, there was no extraordinarily event due to COVID-19 occurred in China, NZ and Australia.
PLEASE EXPLAIN
Hence, why would the group revenue in 1H21 be revised down $55m to $670m in just 30 days? This implies you lost a total of 15 days revenue in the last 30 days, which is unbelievable! Please explain.
In addition, why would the EBITDA margin suddenly dropped 16% in the last 30 days from 31% to 26%? How?
Taking a combination of downgrade of revenue and margin, the expected EBITDA of 1H21 took a massive drop of 22.5% from $224.75m to $174.2m, which is the result of market price today.
All in all, I view that the management is totally incompetent, either poorly managing the business without knowing the accurate sales numbers and forecast, or deliberately hide the numbers in AGM last month.
ACTION PLAN
What is the action plan from now on?
Will you consider any dividend or share buyback given you have over 800m in the bank? This is important to restore the confidence in the market and stop further damage on the brand. This also will avoid any further potential class action against A2M as I based my decision to hold A2M given the message in AGM.
If you cannot generate a better return on investment, please return the cash to the shareholders and we can.
(20min delay)