Folks, I do not often lecture you, but results like these in my area of expertise.
In acctg circles, SNX have taken what is fundamentally called 'taken a bath'. This means they have written off everything in sight (including goodwill, which in reality is only a paper entry) to ensure that they post a profit in the following year. This is very typical, it happens all the time. This tends to be the bottom of the cycle for many companies and signals an upturn. A smart company would not 'take a bath' unless they are pretty certain there are better times ahead.
Also, all their competitors must be practically out of business. SNX will simply use their cash to either mop up their assets or customers (or both) at fire sale prices (as they did for Baltimores assets in NZ/Aust).
Absolutely cracking fundamental buying for medium term 18-24 months.
OMR.
SNX Price at posting:
0.0¢ Sentiment: None Disclosure: Held
