Hi Emhurley, I think this stock has been way overvalued for a...

Hi Emhurley,

I think this stock has been way overvalued for a long time and the market is only just starting to realise it. It hasn't hit rock bottom yet IMO. I expect the SP to continue to slide, maybe as low as 50c.

The fact they have now announced they are reducing overheads by $15M is in itself an acknowledgement they are reducing scale and therefore capacity (I doubt they will be able to do it quick enough to save FY16 results but I guess we will see). They wont be a $700M company again for a long while.

I too was surprised at the new CEO incentive scheme put to vote at the recent AGM given the recent performance. You only have to analyse the results of that vote to get an appreciation for the sentiment of shareholders other than the major shareholders. I tend to agree with the theory he is protected. Whilst I think a breath of fresh air at this point would be a fillip, I doubt it will happen.

My advice would be to steer away from any company in this sector at the moment, let alone one that is overvalued.