ARQ Turnaround, page-11

Disclaimer, this is my option/point of view

The question about ARQ turnaround, I see to parts to this question: Stock price and the Company.

I will try to answer each of these separately

Stock Price

The stock price had a 52 Week high of $2.52 and today touch the 52-week low of 0.515 cents

I see a general market lack of confidence with the stock / ARQ company.

How to turn this around

- CEO / board members/management regular purchase stocks on the market. as a mark of confidence in ARQ

- CEO re-repurchase recently sold stock to match the amount previous holding, as a mark of confidence in ARQ.
Or is this not a good investment? (that why you sold)

- Have investor meet & greet event in each capital city – with a focus on institutional investors

- Have a regular meeting/phone call with the top shareholder.

- Stock buyback with spare cash – however analysis see though this.

To point out - I did not say that the CEO should quit or forced out.

Company

I will try to balance my response to this question at a high level

- Improve customer service – the customer service & their skill is appalling - SMB

o If you can’t get your sh** together, sell or spin-off SMB side of the business, clear debt / raise capital and focus on enterprise

- A dedicated department for digital marketing and oversees by a person with digital marketing skills

o Domain and website support is completing different marketing

o Stop having unskilled “staff” doing marketing, need to sharpen their game

o Make the SOE, managed marketing and other services simple to use

- Reach out to business currently using your service and upsell additional services.

o Not just by phone or mass email

o Domain name customer is the gateway to upsell

o Roadshow event - evening across each state - showcase products

o Have staff available for Q&A from all section of the business – Not just enterprise

If you are doing this now why have a received no comms!

- Clear debt, debt is weight, at present can not acquisition other business or start new ventures for growth

- Stop paying a dividend, until making a considerable profit

o Prefer a 0 added to the end of the current share price

- Reduce management further across the board including at the exec level

- Bing Ads are not the silver bullet for growth, it only a small part

- At any event people available for Q&A from all section of the business – Not just enterprise

- Stop losing customers and show customers your value

- Directors need to be more “hands-on.”

- Question: What has happened with the relationship between ARQ and Telstra?? May be one of the ARQ people reading these post can answer this!

To consider: Why did Dreamscape Networks report a growth in revenue of 20% and show a profit, when ARQ revenue is down and reporting a loss in the same period.

Both Dreamscape networks and ARQ seem to be in similar markets.