Hi Bendigo,Liked your post a lot. Thanks. I have been saying...

Hi Bendigo,

Liked your post a lot. Thanks. I have been saying that IMO SIP are a doomed basket case, largely because.

1 ? They haven?t altered the Board and CEO. These are massive mistakes, and people DON?T change, so they?ll probably make some new ones.
2 ? Their commercial behavior, to both customers and investors, has been incredibly reckless. Incompetent or dishonest?
3 ? What appears to be huge extended credit terms to select customers (175 days plus) is not normal and rings loud bells for me. Have I got that right?

Bendigo, I would appreciate your input on this last point in particular. I run a wholesale business in a different industry, which services customers like WOW, HVN, JBH etc., and I?ve never seen such ridiculous syndicated debt factoring in my life (if I?m reading it right).

In my industry we?ve always said that when you see a supplier start factoring customer invoices, it is often the kiss of death, because it has proved to be a pre-cursor to them going broke. SIP seems to have taken factoring to whole new level. A perilous game IMO. If you are so generous to customers in this way it?s often for horrible reasons ? Like they don?t really want all the stock you?re loading them up with, or they can?t afford to pay for it EVER. And who knows just how they are managing the 175+ days when it comes due. ?dear customer ? We know you can?t pay and haven?t sold that stock which is approaching its used-by date, so how about we credit it out, and re-invoice you again. And dear customer, you?ll get another load of reward points to get more new stock at no cost!?. Yuck.

Would be interested in your comments on this.

S