Hi Hicks I don't hold, but I am interested in the company, so...

Hi Hicks

I don't hold, but I am interested in the company, so have been taking a little bit of a look, but what I see isn't enticing me at the moment and I wonder, certainly on a earnings basis, if the company is still a little over valued and my fear is that the February half year results aren't going to show a significant recovery (yet) and that we may have to wait until the full year results and frankly beyond.
Billabong need to show a recovery, an uptrend, that continues from half year to full year, and from year to year.

From $1.056 billion in sales in 14/15, they derived a gross profit of $563m (not too bad), but selling and administrative expenses were $498m, which seems high to me, and then depreciation and that damn interest on debt killed them, delivering a profit of only $4m.

But the company seem to be looking at ways to increase sales, reduce COGS sold and rein in operating expenses, it just may take a while .... and then theres the Global economic market lurking and that damn debt (of $260m and growing as the AUD weakens).

Seb