value

At what point does the sp represents solid value?

Clarius management have clearly made some wrong decisions over the last 18 months, mainly around their decision with choosing the wrong MD to move the business forward. Finally that decision to change direction has now been made, great!

Overall the fundamentals of the business we invested into last year have not changed, ie. an International business with I think some 30+ offices, employing hundreds of professional staff, and a company with scores of high profile client contracts to supply large numbers of temporary and permanent personnel.

Unfortunately, these bad decisions were also made in a poor economic environment, which has been a double wami for Clarius.

As I see it, this is a company that still turns over hundreds of millions in sales revenue, surely this still represents a sizable amount of funds to work with in which to still make a sizable profit, of course if revenues are down then commissions should be down accordingly, as well as maybe considering some wage cuts, and presumably Geoff will be making significant overhead cuts where he can, ie. non performing staff, conferences, travel, etc. to compensate for a reduction in revenue.

This company has also been consistent in paying out around 70% of profits in dividends; it would go a long way to satisfying investors if Geoff was to reconfirm that they will continue paying such dividends.

It appears to me, as a long term investor in Clarius that the present sp is at its bottom, and, given the company’s potential to quickly operate to its new income levels, and its high ratio of dividend to sp, this stock represents solid value.

Also, this is not a spec company; it is a company with a long track record of success.

With all this in mind I will be purchasing more stock, and it would be nice to see the Clarius directors to step up to the plate and support their stock as well?

It would also be nice to see more announcements regularly, in the future, providing a clearer view for investors of the progress being made.