With over $80 million in funds SNX currently trades at a discount of 40% to our cash backing. Management and the Board are concerned with this valuation and continually refine strategies and communication to the market. Over the last 9 months we have signed significant deals with ANZ bank in relation to PKI and managed services, numerous govt departments in relation to consulting and managed services, and acquired our major competitor in Aust in Baltimore. We have also strengthened the management team and introduced a strong focus on profitability. This has involved a few restructures that have involved the writing off of several million dollars from our balance sheet - not cash losses. We still remain optimistic in relation to our propsects in China and HK but have a much stronger Aust and NZ focus now. A bit less Blue Sky and more on delivery. We think the share price will improve from current levels. The Tech sector has been dealt with harshly and we have been caught up in that rating.
We've looked at a share buy back and at this time would prefer to use the money to bulk up the business. That is to make acquisitions. Last year we undertook a buy back. Several significant shareholder used it as an opportunity to exit. The price has since dropped, and so has our market cap from further declines and less shares on issue. In hindsight i'm not sure we can say it worked.
SNX Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
