Ann: STG TRADING OUTLOOK FOR FY11 , page-3

pcockley
I am not a holder but have been watching with some interest for quite a while.

It started watching when I held a conference a few years back and these guys did the work for me and were brilliant. So I watched and watched and watched it go backwards in a hurry.

My problem was that in Sydney earlier this year I again used them and what an error that was. Old and tired looking equipment, guys who looked pissed off with the world and not wanting to be there let alone help me.

Where has the pizzaz gone?

My understanding is the business tourism market they sell into is down in the dumps so turnover is down which means gross profit will be down and when you are lumbered with monumental debts you are in for a hiding to none!

They are (net) losing venue contracts not (net) gaining so where is future sales growth and profit going to come from.

I totally agree with you that the obvious option is for the major shareholder (Investek) to take out the rest. Alternatively someone will go to the NAB who are owed $60 million and offer $20 million to wipe the debt. That may work if you believe their financials as the group seems to be able to generate profit if their debt level is low enough.

How long will the NAB be happy to sit back and also watch without pulling the pin.

Short term I believe this group is gone and I will be watching some more and not making any move just yet.

What do you think?