Billabong and Goodman Fielder are just two recent examples of...

Billabong and Goodman Fielder are just two recent examples of mid cap ASX companies that had a strategy to 'turnaround' Every time its the same thing. Management consultants get paid $ to come up with fancy strategy-> Company rolls out strategy usually with a codename in various phases-> Company monitors results and finds 'early signs encouraging' and 'cost & operational' improvements 'on track' -> They slash capital spending (amazing how easy it is isn't it???) ->They sell off 'low margin' parts of the business that are not part of the 'core strategy' so they can 'focus' on 'value added' business. It's all a bunch of hogwash and marketing wizardry. Sometimes you can do everything right and still lose. Those companies stopped the bleeding but never really recovered.


I love IGA because its small, closer, hours tend to be better, but I find most price gouge in expensive neighbourhoods and on 24h locations on meat and produce which kills the brand loyalty. There is only more competition coming. Aldi, Costco and independent discount grocers are poping up everywhere. I see these SUPA IGA's next to a coles or woollies and never see anyone in the IGA. I've also never been in a Mitre 10


Not only did earnings drop, but dividend payout % dropped. Why does the company need to free up cash? Is debt service going to become an issue? have they put off capital spending? If they are confident why conserve cash? I don't know where MTS will end up, but I think they are not out of this mess yet. I passed up at $3 a share and I have the same feelings at $1.50, pass - there are better risks out there and a big upside is non existant. Can't see any more hard drops but I can't see this as the bottom. Could easily drift further downward before next results are in.