Well that was a fascinating series of events yesterday. Business...

Well that was a fascinating series of events yesterday.

Business announcement with plenty for discussion and debate. Not much of it good though but much of it already suspected by many. My take.
* Revenue downgrade (still don't believe it is enough as they have compromised their main revenue channel).
* Profit downgrade (sub 10% margins is about right but costs make make this even worse).
* Cash position compromised by inventory (if they cant move the stock it will get its value adjusted down but that wont appear in the accounts until after the half year results - so some deferred pain yet to be had here).
* Initial management changes announced with more to come (Shona will be gone post half year results annoucement).
* BAL strategy to be revisited (strategy is one thing, execution is another and then there is transitioning from one strategy to the other - ooops they dropped the ball on the last piece)
* Poison pill put in place by Fonterra to reduce its risk but burden BAL (no financial relief, only time but with a protective proviso - all in Fonterra's favour).
* and lots of other juicy stuff including a looming Board tussle and the Chair might be up for sale soon as two examples.

Relisting with rather short notice after the business announcement. What a tough way to do it, could have at least announced at end of day to allow the night owls, overnight markets and early birds to digest before it started trading again.

Appointment of interim CEO who is familiar with the business and complex array of dynamics that exit in and around BAL including all the fire and brimstone it is in at the moment.

With plenty more to come:
* ...the lurking opportunists looking to reinstate "what was" and return to the land of obscurity.
* ...ASIC sniffing around the sales of shares by those that were (or should have been) in the know regarding the state of affairs of BAL before the Trading Halt.
* ...3 legal firms sniffing around think there might be a fresh kill to feast on soon.

OH! What a bloody feeling.