"If the size of a specific investment is material or the...

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MattHC

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19/09/20

22:12

Post #: 47477829
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Originally posted by jlo2012: ↑

But they have disclosed this to the market. They've disclosed a broad strategy of making these types of investments and have mentioned that specific example. If the size of a specific investment is material or the strategic outcome of making that specific investment is material then yes it should be separately announced - otherwise it can wait and form a slide on a general preso during a trading update.

Just like customer signings - if they are non material - they can just include a bunch of their new customer's logos on a few slide of a trading update preso.

When did they last update the market? Late August? Like 6 weeks ago?

I don't think they can make it any clearer mate - trading outlook in the short term is very uncertain - they can't provide guidance and will instead provide periodic updates on actual results. PFS doing well, salary sacrifice doing well, some G+I doing well, pipeline of business very healthy - malls doing rubbish. You should be able to assess the historic margins of each and form views from there.

I think updates every 6 weeks is very much excessive and would be distracting for management. As you quote, they will provide qualitative updates when appropriate- so they clearly turn their mind to such things and as of right now - they've got nothing for you. They can't hold your hand every day.

Anyway - the amazing thing about the stock market is that you can press the sell button if you are not happy.

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"If the size of a specific investment is material or the strategic outcome of making that specific investment is material then yes it should be separately announced"

The premise of the Project Accelerator programme literally falls into the 'material strategic outcome' category, whereby each investment value-adds onto EMLs existing suite of products and should be announced to the market, in my view.

To respond to your other comment regarding what EML see as qualitatively important and that being authoritative, well that's ridiculous. Shareholders also have weighting in what is of qualitative importance, particularly if there is uncertainty about future deals in a particular sub-vertical (like stimulus payments).

I won't be selling EML (for now). You won't be buying EML (for now). I'm hoping you get some more clarity in Feb 2021.

EML Price at posting: $2.86 Sentiment: Buy Disclosure: Held
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