well balance it could just be retesting lows? and then onwards and back up? :ohmy:
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well balance it could just be retesting lows? and then onwards and back up? :ohmy:
I still think ATM is close to bottom ...howsoever difficult it may seem at the moment .
Stocks bottom out about 6-9 months before business does ...and most signs are ATM business is close to stabilising ...at least knowing what problems they have and talking about it is half job already done !
Also SKT example ...when SP starts languishing out of utter disdain of investors ...it leads to Vultures looking for easy meat .
Only two stocks were on buy list of Morningstar on NZX ATM and SKT ....SKT already openly pursued ...so will be ATM ...IMHO
Agree with u there ...But ATM was a different class of Company ...only was comparing regarding both being in Buy list of Morningstar . One expect company like ATM or old times FBU to get their act together or surmount their difficulties much faster then SKT type company which got taken in by Technology change issues and they being too cocky about it .
Punters (especially retail) are still mesmerised by the $20+ sp of just over a year ago, thinking that the current sp is ‘cheap’.
Fact is that ATM’s sp of $20+ priced in perfection - perfect market, perfect product, perfect strategy and perfect execution.
It took Covid to blow that perception right out the window - to the extent that we saw management downgrading earnings 6 times! Those who have been in the market long enough know that a company is in total disarray when it has no handle on what’s happening with its operations at a ground level.
Shows a complacent board and complacent management, grown fat and lazy on easy gains - production driven focus.
Remember how Jayne was fired for trying to shift the strategic focus to sales & marketing?
To DB’s credit, he has laid out the problems facing ATM - but mostly on a macro front. He has not really laid out the problems at a micro level - changing the guard alone is but 25% of the solution.
Not doing a share buyback to me is the best indication of just how serious and deep the problems are.
So no quick fixes and the current sp still builds in very high expectations of success. As if!
As of right now, ATM is still sitting on their hands, and still don't have a plan on how to pivot.
We're seeing butchers and bakeries doing contactless deliveries in L4 lockdown, advertising on Facebook pages because everyone will be bored at home and crave a nice steak and a pie, they learn that they need to do something about it and not just sit there and claim wage subsidy, that's pivoting.
ATM CEO / BoD right now: "Uhhh yeah we gon get rekt... oh well.... let's ride this bike to the ground and move on to the next gig........"
Let’s be fair to DB.
He was appointed when everything was going ‘swimmingly’ well for ATM according to the directors and outgoing CEO, Babbage at that time.
When he came on board in Feb this year, things have gone pear shaped in ATM and he could not hand in his worse nightmare, imagine walking into such a mess for a multi billion dollar company.
To his credit, he has not jumped in promising quick solutions and turnaround.
So let’s give him the time to October to come up with the strategy reset.