pcockley Freinds have used Staging?s services several times and...

pcockley

Freinds have used Staging?s services several times and have always been impressed by their fresh, modern and smart looking equipment. Even the techs used to rave about how Staging had the latest and best technology but the last time they used them the equipment had that tired look about it. Without capital expenditure, how are they supposed to keep ahead of the rest.

If turnover drops another 25% how do they generate enough free cash to re-equip? Borrow? They can?t grow without equipment to rent and if they don?t continually buy more stock, what do they rent to clients to be able to make a profit? Hiring out other peoples gear when they run out of their own, will not give them enough margin.

In the nearly ten year history of being a public company, have they ever made a true profit? How often during those ten years have they paid a dividend? The share price is now lower than it was 10 years ago even with the latest consolidation of shares.

Investec, should stop dreaming about a white night sailing over from Europe with a stash of Euros or even with a suitcase (or ten) full of green backs and buy the rest of the script and go private or do a deal with NAB and clear the debt. Would that make the shareholders happy ??