more bad news

G'Day Folks

You will see the new announcement from Commander today stating that they will fall short of their previous profit guideance.

Please pay attention to the Managed Services section of the report, where it states that "there will be wins and there will be loses", in this Commander Business Unit.

In my opinion, this section will be referred to in the future, when it is announced that Commander have lost the G8 contract. As I have previously posted, it is my opinion that Commander will loose this substantial piece of business and when they do, there will need to be yet another profit downgrade from Commander.

From memory this announcement makes it three of four announcements in a row, where Commander have not met their previous profit guideance. This announcement will take some of the gloss of previous posters who have been raving about the new management team. In my opinion, the new team have followed the previous Commander management dogma of being overly optimistic about the state of the Commander business.

The only good news to come out of this announcement is positive cash flow.

I will again state for the record, I have not been wrong yet on one single posting with regard to Commander. It is my opinion that today's announcement is overly optimistic about how Commander are travelling and I again repeat that I expect to see further Commander profit downgrades in the future. If they loose the G8 contract, the next profit downgrade will be a significant profit downgrade - please keep this in mind.

Regards

Tails