Cost cutting must start at the top

CYG are on a monotonic ride into the gutter.  I suspect the SP still has some falling to do.  This is painful to say as the company appeared to have been jolted into action last year.  They spent a lot of money "restructuring" but with little or no return on their investment.  In fact, they lost a lot of custom through the process (what is this? amateur hour?) and now opine that they will work hard to get them back!  Heeeeelllloooooo!  Its far easier to keep customers than getting them back!  This is retail 101: most customers would never return - once bitten.  This speaks heaps to the poor execution of the company's restructuring efforts.

More importantly, however, CYG are a multi-commodity business.  This business model comes from the 1930's and has shown little ability to succeed in an age where specialisation is required.  Industry colleague HGL (ASX:HNG) are in a similar funk.  This business model is broken. Even distribution companies like Metcash (MTS) are divesting of noncore businesses partly in recognition of this.

Yet management continues to pay itself top dollar.  The CEO's pay rose from $429,618 to $585,382 last year - a 36.25% increase!  At a time this $33M capitalised company continues to deliver losses year after year!  In total terms (incentive schemes, share loans, etc, the CEO got $767,198 in 2016, a 22.77% increase!  Give me a break.   When is the board going to get a touch of reality?

A lost cause?  Likely.  Unless the Board takes some real decisions, and not relying on side-issue technological fixes or being overly concerned about leases running out I cant see a bright future, just more of the same SP decline to obscurity.