to be completely fair and honest about the situation it was some...

to be completely fair and honest about the situation it was some what expected that there would be a blow-out in the costs associated with shutting the division down and finalising the closure, this is the construction industry after all. While i had not expected such a cost blow out keep in mind that the closure was of an existing unprofitable division, the company has moved to make the core business more profitable which is ideal. The update also highlighted the current state of Simonds homes and the current builds they are under taking in their core business which was a slight positive on a negative market update.

I think a lot of the market reaction is based off of fear for a down trodden company and the expectation that a cost blowout of this nature will have a long term carry over. The report neglected to mention any details concerning the BAA arm of SIO, i would subsequently take that as no news is good news and that the plan from the past update for BAA is still in effect and working as planned.

While i think a dividend will be optimistic at this stage given the substantial increase in costs associated with the closure of madison, i do believe that there will be substantial upside to the SP in the coming months, a lot of investors will now wait for the final year report at the end of August now before we start seeing any real price movement.