Well I have sold 2/3rds of my holding and , while I have not given up totally on the notion of a Turnaround, I now have to see actual green shoots before accumulating again.
I have been involved in the bunker of 3 turnarounds - one where it was family money/honour at stake.
There is a period where you are being kicked from all sides, while you can actually see a jigsaw coming together ...and it is good when it does.
My suspicion here however is that AG hasn't read the Turnaround books about the need for sharp cut knives as a first step. They need to slash for cash and face up to the actual problem. The borrowing is too high . If they cannot get the cash balance headed in the right direction very very soon then the organisational format and finance could change PDQ. 2017 will certainly be interesting.
All the things I have said about PE less than one and ludicrous low SP are only true if the underlying business is generating net cash - even if that is by shrinkage - and can sustain ongoing good profitablity. It is not clear that that is the case ( although it could be) . It will be interesting to hear an informed view on Escrow ( knowing how disputes drag on - we could be waiting for some time) .
Mel
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