There really is no excuse for the managment incompetence of the acquisitions........
You may cite the GFC, but to management's credit......ironically......the actual businesses earnings have stayed quite stable, a little down
So you may ask how a company with a stable, good business got into so much trouble...
The fact is their negotiated bank covenants did not allow for even small falls in profitability...so why go on the acquisition spree using such unstable debt!!!!!!!!!!!!...meaning the guys in charge sold over 1/3 of the company off for 46 cents.....were it not for their incompetence the stock should still be round $3....it has killed EPS
The substantial holders you mention....PPT got absolutely slaughtered buying John Singleton's lump just before he headed for the exits around $3....Singo knew about the people in charge.....he'd worked with them and had 'fundamental differences'
WPP picked up at similar prices and a massive lump at 46 cents
It's actually a good business but due to the forced capital raising, will not hit $4 for a long time
SGN Price at posting:
74.5¢ Sentiment: None Disclosure: Held
