Regarding management, the new management (including chief financial officer which changes every 3 months on average!!) is more caretakers from the 'pros' who exited....that is a good thing because they seem to lack 'the ego' and want to sought out the mess steady as she goes
They are trying to mop up the problems, although as you see, the business is committed to pay "earn outs" every year out to 2013 and beyond.......
I have never seen a business with $390 million of intangible assets, plus $100million in 'investments'...plus probably another $100million in earns outs committed to be paid...
The thing earned $33 million underlying......how's that for a return on assets!!!!!
Anyway, quite simply last year they earned 20 cents underlying EPS, this year 11.1 cents
That's good for a business trading at 80cents but well below potential........next year they will earn at least 13 cents and will probably trade above $1.50 maybe, maybe
SGN Price at posting:
80.0¢ Sentiment: None Disclosure: Held
