Ann: Publication of Research Report by Patersons, page-10

Prey, bang on with your comments.

I don't see how SHP is fundamentally unsound comparing to GEG, TPW and other online retailers on the market locally and internationally. Everyone is operating at ~20% gross margin, sell pretty much the same products, and with similar logistical challenges. Yet everyone except SHP is being valuated at 1.4 - 1.8x MC/revenue multiple, and SHP is still sitting at 0.25x.

The real difference here is that our former broker friends have screwed the share register over in the past 2 years with their free and 1.5c oppies. This has absolutely decimated any retail investor support and interest, and has deterred any institutional interest despite numerous roadshows and pressos. No one is willing to put money down when share price is capped at 1.5c. No one is willing to put money when earn-outs are issued at today's low price, further dilute existing holdings and no different to a low-ball CR.

Look at TPW, raise $60m war chest with a much higher valuation and ready to scale and land-grab quickly, aiming to get to something that what SRF has now achieved.

No one has had the balls to deal with the elephant in the room, which leads to where we are today.

Carosa, Goulopoulos, Dickinson, Clark and Coppa aren't making any real money at this level. No one is making any real money at this level.

If the Board thinks that getting to $26.5m and EBITDA neutral are the only triggers to a re-rating, then they can keep watching their hard-earn dough stuck at neutral cos share price won't be moving just for that.