This report makes me shudder. What is this traffic light nonsense. It is supposed to be green = better than target, yellow = on target, red =missed target. They didn’t beat any targets so they moved the whole scale and coloured everything green except the $100m hole from SPC... you shouldn’t get 8/12 dots green if your earnings decline and most companies have increasing earnings. That is a completely nonsense system.
I should have stopped reading...
Amatil-x. It’s cool like x-fit or moto-x because it also has the letter x(read their press releases for more x words if you want to be cooler) It needs to be cool too because a drink company trying to become a tech company isn’t smart. It is really really dumb. How does a board whose fortes include growing grain and managing dirt think it’ll do a better job of picking tech companies than people that actually know what a computer is? If I wanted high risk zero return investment, I’d invest in garbage. Don’t turn an investment in beverages into an investment in garbage-x.
Investing money in price cutting and advertising is for price sensitive items like potatoes. Branded items like coke gain share with award winning adverts linking it to cool things and people. Yet we are investing money in price cuts like it is a potato...
Selling SPC? Who would buy a loss making company that can’t be turned around? No one... unless they know current management are terrible and that is what is causing the losses. If Amatil can sell SPC then they should take the easier option and sack management!
The nonsense about how they have a “genius” idea to sell property is nuts. There are some very strategic reasons in the long term with the fact that they are only a distrubutor that make renting their factories a potential risk over longer periods. It isn’t worth the pennies gained.
Starting to see what management is like these days. Sell Indonesia to boost the bottom line line. Sell spc to boost the bottom line. Sell some properties with favourable initial lease agreements to boost the bottom line (for a while). Give it 5 years and there will be no assets to sell/ nothing to earn money. The investment banker who told them more sales = more profit was right. His commission was huge and he is making bank! It’s like they don’t realise he doesn’t have their interests at heart.
I hope we get new management soon. Never thought a company with such a big most could be damaged by management so efficiently
Board needs to go!!!
CCL Price at posting:
$9.28 Sentiment: None Disclosure: Held
