You have basically outlined the state SIP is in. Lots of debt dispite the recent 300Mil capital raising, poor cash flow, tough business competition, questionable management and board, banks now watching over SIP, no div, Fire sale of Herron (which they have trouble selling it last year) and looming law suits...etc.
These aren't all the bad news, I feel that more bombsheels will be unleashed in the coming months/year as SIP customers will probably change suppliers. How about ALLCO involvement in loans and reward programs? Any more "non-reoccuring" good will write downs?
SIP was a darling of the market: Trusted brands, and people do support Australian industries. But with what has been unfolded over the last few years, and now with this bombshell, I am not so sure about the future of the company.
Of course with every seller there is a buyer, so when people say that SIP is now undervalued, I say what value is left? The business has proved to be "too hard" to make a dollar or two. Especially now seeing people trading on the back of a volatile SP, I see fewer investors left in this crowd, but traders. Just my opion. Cheers
SIP Price at posting:
45.0¢ Sentiment: Sell Disclosure: Not Held
