I take your point that posters are entitled to express a negative view about a stock but using the same principle posters are also entitled to be positive about a stock. Posters with the greatest credibility are those that give both credit and/or criticisms that seem to be able to be backed up.
For new investors, of course it is essential they should make themselves aware of the risks before investing but it is equally relevant to existing shareholders. On the other hand based on the position the company was in before the save the company and turnaround strategy started we existing shareholders are entitled to be excited given,
-that the company has not gone under. It was a very real prospect until the new financial arrangements negotiated by the new management. -cost cutting is occurring -divestments are occurring -strategic management being applied with a focus on its core business.
Yes, there is still a risk of failure but a dedicated and competent management can also turn the situation around. Success is likely to be incremental over a significant period of time. The Commander brand must have significant value otherwise why would the former management have debt funded it to the extent they did. The problem appears to have been in the execution of their growth strategy.
Knowing the risk it is up to the shareholders or potential shareholders to wiegh up that risk. I note that share turnover is not high but appears to be trending up. Given that I am aware of the risk and given that I am willing to take the risk I would prefer to buy now while prices are low, rather than wait until the horse has bolted. Basic research prior to investing in this stock will establish its history and enable investors to wiegh up the position and decide whether to invest. Some stocks succeed in their recovery strategies, others dont. Example of successful ones are Aristocrat Leisure and Brambles, while a failure was Automotive parts provider ION. In IONs case the company went into administration before any turnaround strategy could be implemented. Commander has received a lifeline and the new CEO sounds confident in her strategy and given the very very low sp I have increased my holding.
In conclusion while every poster is entitled to a point of view motive is always a factor in every post including mine. Motives will vary greatly between posters but the reason we try to establish motive is that it is a crucial part of assessing the credibility of the information being posted.
Cheers SAV
CDR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
