Originally Posted by
blobbles
Yep, I was as positive about the company as mknz a year ago... a year later I am out for only a small loss.
To me, I have no idea why the share price is stuck at around 42c. Management of the company seems to be inept, then covered up with nice words, followed by missed results, more ineptitude, followed by covering up with nice words. As others have pointed out, this has been happening for YEARS, which shows it has become a part of their culture and will be hard to change.
Like others have said. The industry this company is in is booming while their profits are sliding further and further into the red. This company is seriously under performing and they continue to make stupid decisions (why on earth they didn't currency hedge properly is beyond me) and keep blaming everyone else for their inept management. A badly managed companies share price will likely head one way and I believe it will continue to head that way rather soon.
At least they are responding to such criticism by making some sound financial decisions (moving production off shore) and management decisions (getting more independent directors), but I fail to see this having a great effect medium term. Their savings of 10m on moving their production off shore may mean that they break even next year. They need to win a lot more customers (unlike the Huawei deal which added virtually nothing onto their bottom line), make a few more management changes and produce a lot more product enhancements (hopefully backed up by IP) before I am lured back. Plus they need to actually start providing real guidance, say that they made mistakes and make themselves accountable for those mistakes by giving a number of staff members (we know who they are) dramatic cuts in their pay in direct relation to the performance of the company. If they can do all that, I will be back in. If not, we may be kissing goodbye to a NZ company who had the greatest potential.