I'd like to give some info about SFM. Many people may not be able to find its history as it was a relisted company. It was EZA before.
Before saying that, in my opinion I firstly chose the stock with the hard working, trustable and reliable management. A company might have very good resources but if it does not have a good management I stay away from it. Mark Jones and Doug Rose are exactly the right people whom I am looking for. As I have told on the other thread I have made a lot of money because of being in Mark Jones's stock (ELM - Elemental Minerals - was a potash explorer) 7 years ago, started buying at 25c and averaged up 50c, then stock went up to $3. The potash was found and we all left when he left the management. He is the trustable, hard working and most reliable manager in ASX I have ever come across.
OK. Now SFM,.. ex EZA.
EZA was listed in October 2011 as an ATM deployer business. CEO was Todd Zani. Non-executive Chairman was Mark Jones.
On the 3rd June 2013 the board terminated CEO Todd Zani.
On the 1st July 2013 Doug Rose was appointed Managing director.
To save the company from administration, over the coming months Mark and Doug drastically restructured the business, cut costs and removed non-performing machines. Mark Jones also lent the company personal funds in order to save it from going into administration.
On the 30th August 2013, Mark and Doug identified cost savings of $1,554,000 from wages, accounting fees, travel, advertising, bank fees and entertainment.
On the 18th September 2014, EZA announced that they sold the ATM business to a large Canadian ATM deployer Direct Cash Payments Inc.
At the completion of the transaction, EZA had $10,261,694 cash, no debt and only 60 million shares on issue as a result of a buyback of 14.6 million shares owned by Direct Cash.
So Mark and Doug turned EZA around from a company on the brink of administration to one of the very top cashed up, tight ASX shells on the market looking for a new project.
Interestingly, Todd Zani went on to start STL, Star Group holdings, an ATM business which recently went into administration and receivership.
GLTA with SFM.
SFM Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
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