Maybe they think shareholders are too gullible to notice or care...

Maybe they think shareholders are too gullible to notice or care about such things and those that aren’t can read between the lines. Margins have no doubt been affected by the increase in the sales team and the one off expense of the embezzlement but at least they are giving certainty about margins for the rest of the financial year and have acknowledged the need to cut costs with the reference to the cost cutting program.

There is enough information to predict the end of year result and beyond with a reasonable degree of certainty. It suggests that the half yearly poor figures was something of an anomaly and that the sales team is as large as it needs to be for some time to come and increased future revenue will not be eaten up by increased costs of expanding the sales team (not for a while anyway).

It seems to augur well for a fair end of year result (boosted by higher than predicted revenue) and beyond which I see as the most likely reason for Colin Marland buying more shares (a pity the last rumour about a merger with MAQ wasn’t true as I still think it would be a great marriage and stop MAQ going down the plug hole). While it is clear that they aren’t heading for a large end of year profit it should be higher than the poor result last time pointed to. I guess when the mass sackings begin we’ll know they are serious about maximising profit!

They do remain an attractive takeover target because the sales team doesn’t have to be part of a purchase and it would be a quick way of adding over $100 million revenue to a company for a reasonable price given the low share price. I’m not selling and will wait to see if the potential of the company is realised perhaps with the help of a dynamic new CEO.