And the Board have taken the decision to revise downwards the FY17 forecast as and when they became fully aware of them. It takes time to understand these issues. You can't just discover it, send the company into freak-out mode and release an announcement. The Board needs to fully understand the issues and what they're going to do about it first.
I'm only new to VOC (got in with super at $3.25 a few weeks ago and yesterday with my active portfolio at $2.46) so I'm not approaching this as a fanatic but more so from a commonsense perceptive. The bad news is out there. The SP was accordingly punished and the Board have charged all the expenses they can to this year's earnings so next year will be the recovery.
If they bake in the synergies from the acquisitions and finance transformation, sales will rebuild and we'll be banking significant profits again. At these levels, you can't ignore the return on that. Still speculative position as it's based on a numbers of big 'ifs' but long term, the yield will be stellar.
The risk of TO is probably the biggest risk for me now and that ain't a bad risk to have. Is there a chance they'll revise downwards again? I don't think so. If they do, then sure, we'll be in strife but they didn't make this revision a half-arsed, rosy story. It's harsh and comprehensive.
VOC Price at posting:
$2.41 Sentiment: Buy Disclosure: Held
