Hi danjc82, I think you are way off the mark.Yes, STG currently...

Hi danjc82, I think you are way off the mark.

Yes, STG currently has great market share in top quality venues but it is clearly on the nose with many clients due to intransigence, lack of flexibility and zero entrepreneur spirit that only the owner operator model of the old STG could manage. With many mistakes made over the last few years by many managers who are still at STG in senior management and on the board it is hard to see how they can change direction.

Their balance sheet is a mess, with bank debt alone sitting over $60 million after the Bytecraft sale, more than enough to keep them down for ever. Their next challenge (when they are forced by the banks to sell the last of their non-core assets) debt will still be around $50 million and cash flow and profit will no longer be enough to cover interest payments let alone pay down their massive and unserviceable debt, any time in the future.

Further with people like pauldub giving them curry at every turn their margins will continue to shrink. Every resigned venue contact is signed at much higher commissions and part of the contract terms they must make huge capital investments, something a company with massive debt will struggle to deliver.

So what now.

STG is a company with a great past and potentially a great future but plenty of issues that will have to be faced by new management with innovative thinking, something the current guys can?t seem to manage.