Originally Posted by
Beagle
Must admit that I have been feeling sorry for OCA shareholders lately. As I have posted before, its about 3 years before their service offer is 50-50 new model / old model and in the meantime a really key question is can Earl and his team control their operational costs effectively ? On the evidence I have seen to date and the odd whisper I hear from within the company, there is considerable doubt and I remain of the view we will see pressure on profitability mainly due to human resource cost expansion. I expect continued sector underperformance. That said, it does appear to have built a decent base at around $1.02 so those that take a really dogged approach to holding should do okay.
The overhang remains and I remain of the view that this is also a very key consideration going forward.