Post by
woolwich on Nov 28, 2014 8:03pm
Worth considering
1. When a company generating over $400 million in annual revenue has a market cap of less than $7 million and volumes of share trade are not high it must be accepted that investor (or even day-trader) confidence is very low. Can virtually everyone be wrong?
2. When there is seemingly only one lender (of last resort!) it's a fair assumption that same has chattels over everything that moves including every last cent of receivables. Under what other circumstances would such a lender allow the borrower to add lending and access fees to a loan facility?
3. When a corporate Board and senior management appears to be in corrective-action or strategy paralysis why has new leadership not been parachuted in? Is the patient beyond saving or is current management too pre-occupied with self interest?
4. When will investors and/or traders holding 5% of the company become sufficiently cohesive to call for a special general meeting of the company? Taking steps to demand action may be the only means of bringing about change at Armtec.
Wise business people agree that without sales a company has no business. Armtec appears to defy this wisdom; they have turned a good level of sales into a non-business!
Comment by
2Greying on Nov 30, 2014 11:30am
One thing I could never understand about Drainage: they state that the margins are compressed because of high input costs and competition is the area. Surely the competition has the same input costs. Is the real problem our overheads? Seems to me they need to get costs in line with those competitors or sell the division.