I continue to buy...Amanda is great she will turn this around and the issue with the downgrade is mearly what happens when a new CEO takes all the hits in the first month of being on board....however the turn around plan is fantastic because what you missed in those slides is that the rest of the business (x Volante) is performing well with Gross Margins as high as 40% on some lines.
Franchise sales are up month on month as they continue to gain more traction.
The CFO has gone to work with his team rounding up debtors and writting off some of these which is probably also part of the downgrade as previous management booked some revenue which simply was not there !
Keep the faith the stock is still being hit with selling from a fund trying to exit whilst Hunter Continue to buy now as they were subject to a non trade agreement for the last 30 days whilst this plan was being hatched !
You also need to look at the one massive positive is that no convert note issue was required which would have dilluted the stock at these levels and the bank is probably the most conservative party with a vested interest and they are happy to delay debt reductions for another 12 months !!
All in all I can not see one negative by which the Market Cap remains at 40 odd million...I would think given the business is going to stay around a market cap of $100 mil would be more appropriate !
Just my thoughts !
CDR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
