The foray into the US, which coincided with a period of flat top-line growth here in Australia, is what made me sell my shares in LBL, because it smelt to me that the US was a desperate strategic attempt to plug revenue holes.
And strategic desperation invariably goes hand-in-hand with torching of shareholder value.
So while they are walking back (if only temporarily) from their US ambitions looks like lack of conviction flip-flopping, at least the execution risk and associated loss of shareholder value is no more.
Stock looks undervalued if the focus on growing in Australia is even moderately successful.
I think I might have to re-visit.
.
LBL Price at posting:
38.5¢ Sentiment: None Disclosure: Not Held
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