I agree. Why do think Bevan and the board replaced him with Matt. Rob’s clearly very bright, a HR software specialist and great at building partners / channel relationship and driving software development and R&D.
He wasn’t the long term A type CEO they needed(As I predicted in earlier posts prior to the announcement) and was not great with capital raising/capital allocation and his business gearing was off in terms of managing costs.
Bevan is heavily invested and won’t fail(largest shareholder). Sure 3DP is down but their market cap proportional to their AAR is still reasonable in this market.
That’s why Bevan shuffled the IHR board and put Matt in charge. Matt has already slashed costs and restructured the business.
If your frustrated the share price is declining it’s partly my fault and other investors because we are placing large buy orders bellow market to force nervous sellers down.
I’m forcing down the value of my current share holding because I believe the long term multiple at these prices is significant. It hurts short term but the long term gains 12-18 months out IMO will be considerable. The elephant in the room is a CR.
I have looked at the numbers and am placing large bets they won’t need a cap raise. IMO Bevan will be pissed if he has to tip more cash in as he is the largest shareholder.
Going forward I believe we will see significant quarterly reduction in cash burn and steadily increasing quarterly AAR especially with Cintra formerly launching at the start of June.
Bevan almost lost Pipe during the GFC because it hit during the building of Pipe’s international fibre cable to Guam. Pipe were hugely over extended because their bank pulled their guaranteed financial support due the GFC.
He flew around the world and got major partners like Google, TPG and IINet to rearrange commercial terms to pay up front capex for a reduction in long term fibre leasing fees.
His pitch was if we don’t as a group get the International Fibre link built the Gang of Four(Telsra, Optus, Southern Cross ect) will continue to work together to keep Australian Internet prices extremely high.
It was a win/win for all parties and as a result the price of Internet downloads changed forever. He saved Pipe, changed the Australian Internet landscape and sold the business to TPG for a killing.
TPG eventually merged with Voda. I know Bevan and have worked directly for him in the Pipe days. Make no mistake the guys an absolute genius.
To be honest the fact that he’s the largest shareholder helps me sleep well at night in this turbulent market.
Im backing Bevan, Matt, Rob and the board. This business is being managed by some very smart people. And I’m confident they are laser focused on cost control and growing AAR.
Just my ramble and obviously all IMO. GLTA.
IHR Price at posting:
5.5¢ Sentiment: Buy Disclosure: Held
