I think the real problem is the company has a long history of guiding upwards at the half year mark and this time excluding the already priced in recurring U.S. tax benefits for the first time in years they effectively guided downwards on a net operating profit basis. I can certainly understand the markets disappointment with that.
Maybe a bit of acquisitive indigestion holding them back
Love that phrase
”When investors are euphoric, they are incapable of recognising euphoria itself “
They are well on their way to 50m NPAT as targeted so I'm not really worried about a slightly more modest year. There's nothing in the report to suggest they are not delivering. As I highlighted beginning of the year the SP got a little bit ahead of itself but I think it's a decent long term hold at present.
Maybe a bit of acquisitive indigestion holding them back
Love that phrase
AKA biting off more than you can chew. I think they'll do fine in the long run once they bed this new operation in and get it humming along nicely.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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