Jimk I agree - absolutely no bunnies this month. I have been a...

Jimk

I agree - absolutely no bunnies this month. I have been a tentative bull on the Turnaround possibilities.

The $90M on advertising post PSD purchase and AG's comment about brand recognition appeared to me a spend with be really bad timing .

I agree that it is about as bad as it could be for equity holders- but on the other hand it isn't all over .
I have moved to the sidelines ( ouch) and will wait and see if a new plan for slimming down emerges. I do not see how they can reverse any value destruction without +ve cash flow and eventual 14% NPAT on Turnover.

It still remains true that +ve cash flow could emerge in 2017 , 9 figure ongoing profits on reduced turnover is a possibility too. Financial engineers have something to work with - but not if the cash flow picture can not improve . Future growth? - dont be daft. Reputation damage?

Can SGH get to attractive Turnaround? Don't know . It is possible but AG may find that failure to cut hard and fast at the outset may cost him dear. I hope I am wrong on that but I hope they get the Samurai out again and SLASH HARD. Painful but necessary. +ve cash flow is essential.

Mel