The first rule in investing in any company is look at the...

The first rule in investing in any company is look at the quality of management. ASG have given the appearance over the years of being both capable and progressive as they have sought to grow the company. However the recent results have shown that prudence is a quality they lack. They have exposed the company (and shareholders) to unacceptable risk with heavy investment in the hope of capturing more lucrative and high end contracts. Last report signalled some warning signs as they were outbid by overseas countries and there is an increasing likelihood they will continue to lose to offshore tenderers as it is so difficult to maintain a competitive advantage when bidding against Asian interests. Does the "home advantage" work? Apparently not as none of the high level contracts have come to fruition and I don't read in their report that a major announcement is imminent in this regard. So the asset backing is low (after debt) the prospects are shaky and all the blue sky being spruiked is being taken over by "clouds". I can see trading drifting down to the 40 - 50 cent range until something more tangible emerges.