After holding since buying in after the capital raising was...

After holding since buying in after the capital raising was announced last year, I sold out at a small loss on the CFO resignation news.

Operational performance appears to have improved since last year with the upgrade to EBITDA guidance, but recent results don't appear to show the momentum continuing to flow through.

In AMA's situation, a CFO's primary job is to refinance the loans and them resigning is a very poor reflection on their abilities (and hence will hurt their future career prospects) and a poor indication of the progress of the refinancing.

I also note AMA's commentary from the capital raise (see below) that the 2023/24 pricing with Suncorp "include transitional support while AMA Group impelements several operational initiatives throughout FY24 which are planned to improve efficiency and profitability of Capital SMART." This certainly suggests that the starting point for the 2024/25 price negotiations with Suncorp will be a price drop (prior to inflation adjustments). AMA's not making a bottom line profit at current pricing, hence any further reductions would be problematic...

The main saving grace for AMA is that they are probably too big to fail for Suncorp at this point, but does that mean Suncorp will pay them above the odds so they can start making real profit again or just enough to keep them ticking along while they encourage other, more efficient organisations to grow and gradually replace AMA...

I keep being tempted to buy back in around the current price but I think I'll wait for a definitive announcement from AMA.

Thanks for all the commentary in HC - I've found it very helpful in understanding AMA's business and journey