CDR - Commander Communications

[pch]

I worked in communications when commindico went bust and they offered us by far the best deal only 2 days before it all happened.. you have to be a little careful reading into this sort of stuff. Under this sort of pressure, the motivation for landing these sort of contracts can be such that short term revenue is more important long term sustainable profit.

Not saying this is the case, but it may contribute to the sp inaction despite this sort of news..

 

[Rainmaker2000]

That a very good point Pch.......since the company is practically trading bankrupt because they cut their margins too fine......one would think the announcement of new contracts was bad news..........if these guys are to get it together, they've got to lock the place off to new business, cut costs to the bone and start playing hardball on contracts.......It would take determination to do that.....instead, I suspect they have opted to throw the dataroom open, keep the facade of a successful business and just wait by the phone in the hope that its AAPT calling and not their bankers

 

[ROE]

Hunter Hall keep increasing their stake in CDR wonder why..they now have a blocking stake in CDR so any take over has to satisfied them which is good I suppose

 

[TheAbyss]

What odds Soul buy CDR and the $170 m debt? Not the best outcome howver it is an outcome?

Soul are a domestic only and trying to increase their footprint into commercial and have the cash.

A quiet tip from someone in a position to have an educated opinion (not me). We shall see i guess.

 

[adamwu]

anyone knows what happened on CDR today. I watched around 600,000 selling at 3:30pm, and the sp dropped to 29c again. no news no nothing.

 

[ROE]

Say hello to new Daddy sack the damn management and turn the baby around

http://www.australianit.news.com.au/story/0,24897,22825923-15306,00.html

Master meets Commander

THE management at junior telco Commander Communications could be in line for a shake-up, following recent purchases of its stock by investment management business Hunter Hall.

Following Commander's reinstatement to official quotation on the ASX on October 30, Hunter Hall doubled its stake in the company to 10 per cent in less than a week.

Hunter Hall declined to comment on its increased stake, but the firm has a track record for turning around troubled companies, which should sound warning bells for Commander's besieged management.

Earlier this year Hunter Hall turned around the operations of another troubled telco in which it was a shareholder, Orion.

Orion Telecommunications' share price was suffering after it fought off a hostile takeover attempt and, as a majority shareholder, Hunter Hall installed new management and sold off some assets.

This turnaround attracted a takeover offer that valued Orion's shares at a 60 per cent premium, a deal that was closed recently.

It is understood that Hunter Hall's interest in Commander arises from the changes the company has flagged in addition to the purchasing interest the troubled telco has attracted in recent months.

The Orion turnaround would be experience that Hunter Hall could draw on in shaking up Commander's management.

 

[adamwu]

Thanks ROE, hope it is only the current management selling. As they think they will no longer be the god of this company.

 

[3MT]

that and/or IOOF selling down their remaining 7%. Hunter Hall is confident it can shake this company up. It's now gone back on my watchlist as a result.

I think it may even benefit from the Government's PCs for school initiative, given it owns the IPEX branded machines.

Although I imagine a turnaround would be slow going. Hence I've put a conservative 20c alert on this stock.

 

[3MT]

Looks like buyers have all left the party and a capital raising is imminent.

Explains the downgrade pressure on the SP over the week, although the public was only made aware today.

An interesting point in the report today that they have ceased cutting margins substantially in order to keep customers. Management seems confident in the business moving forward.

 

[sigmadelta]

> Looks like buyers have all left the party and a capital raising is imminent.

c. $4m on the buy side today, and up 30%. You may wish to retract that statement.

 

[3MT]

Hi Sigma, I actually meant corporate Buyers (TEL, Optus, Soul etc)

Read a report today that reckons the price may have bottomed at 25c. Looks like I miss the boat if that's the case. (was waiting for 20c)

Good luck to those still holding. Am still a believer in the business model, but still regard this as a high risk stock.

 

[ROE]

Hi Sigma, I actually meant corporate Buyers (TEL, Optus, Soul etc)

Read a report today that reckons the price may have bottomed at 25c. Looks like I miss the boat if that's the case. (was waiting for 20c)

Good luck to those still holding. Am still a believer in the business model, but still regard this as a high risk stock.

None of those guys can buy CDR on their terms any way it has to be on Hunter Hall term as they have blocking stake ... Steady fast no cheap and easy way out like the chicken management at RAMS.

At first trouble they bail and look for safe haven to keep their high paying job ..disgrace

 

[sigmadelta]

Hunter's blocking stake is one of the most intriguing things about the recent few weeks.

The only conclusion I can come to is that HH didn't want the whole of the company sold off for very little. Perhaps they thought that would be the most obvious option for the directors, or the most attractive one for a buyer.

HH having a stake wouldn't have blocked any partial sale AFAIK, as you don't need over 90% of the votes for that.

 

[Rainmaker2000]

Hey guys.....I got to say I liked the rhetoric from management in their announcement....obviously so did the share price........They have for the first time indicated that they are inclined to stand and fight to turn the company around and even raised the prospect of not raising new equity......the worst case prospect was a fire sale which they ruled out....next worse, was an equity recap....Don't underestimate the contribution of HH which has engineered this in the Telco sector before....

If they can start making any inroads into the debt, this could be an extremely profitable little stock from these levels......a type of reverse private equity scenario.....ofcourse, I have not bought at these levels...hehehe

 

[ROE]

Hunter Hall increase their stake to 14% at this rate they may own the company by early next year

real smart move these mob ..if they intend to buy the whole company just wait for the share drop then increase their stake... that way they don't have to pay a premium for it

Last increase stake they pay average close to 31 cents a share..

I would do the same I'm steady fast with these guys I'm not selling at anything below 90 cents

 

[ROE]

Hey guys.....I got to say I liked the rhetoric from management in their announcement....obviously so did the share price........They have for the first time indicated that they are inclined to stand and fight to turn the company around and even raised the prospect of not raising new equity......the worst case prospect was a fire sale which they ruled out....next worse, was an equity recap....Don't underestimate the contribution of HH which has engineered this in the Telco sector before....

If they can start making any inroads into the debt, this could be an extremely profitable little stock from these levels......a type of reverse private equity scenario.....ofcourse, I have not bought at these levels...hehehe

I expect them to stand fast and turn the damn thing around not bailing out like the chicken RGH mobs.. no business run smooth all the time and if you cant handle the worse of the company you don't deserve to be a director

 

[3MT]

HH wants more voting power to oust management, that's the only way to really turn around this ship. If management can stuff up so badly, would you want them to keep steering the ship even if they mean well.

I believe in second chances, but 3 profit downgrades in quick succession, late lodgement, shady accounting categorisations and worst , the CEO had nothing to say during the whole ordeal (ie he had no idea what went wrong) - makes it very hard to put your faith in these guys.

I do think its a $1 stock, but not with the current management.

Having said that I do hope they prove me wrong and turn this into a $5 company in 5 years time.

 

[ROE]

Thankyou Hunter Hall

keep going and turn this ship around.

COMMANDER MANAGEMENT CHANGES
Commander Communications Limited (ASX: CDR) today announced the
appointment of Ms Amanda Lacaze as Managing Director and CEO from 7
January 2008.
Ms Lacaze succeeds Mr Adrian Coote who has today tendered his resignation as
a director.
Mr Coote, who is currently on leave, will remain in the position of CEO until 7
January 2008. This will ensure that if necessary, the company can make use of
his strong relationships with customers and suppliers in order to effect a smooth
leadership transition.
Ms Lacaze will immediately assume the role of Acting CEO.
Ms Lacaze has been appointed to the Commander Board as an executive
director and Mr Shane Allan, has been appointed as a non-executive director.
Both appointments are effective as of today.
Short biographies for each of the new directors are included at the end of this
announcement.
Commander Chairman, Elizabeth Nosworthy, also said that, while the Board will
continue to look at options over time to recapitalise the company, it will not be
contemplating any proposals for a break-up of the core elements of the company.
“With the strategic review and data room process concluded, Ms Lacaze will
focus on rebuilding the business, providing outstanding service to our many
customers and franchisees and maximising shareholder value.”
MEDIA RELATIONS
Jim Kelly
Third Person Communications
T +61 2 8298 6100
M 0412 549 083
E jim@thirdperson.net.au
Page 2 of 3
“We are delighted to welcome Amanda Lacaze and Shane Allan to Commander.
“With extensive experience in the telecommunications sector and a proven track
record of optimising the performance of public companies, the Board is confident
Amanda Lacaze has the skills and experience to set the course for Commander’s
future success.
“Amanda will have the complete support of the Board as she approaches this
important task with energy and focus.
“Shane Allan also has a strong telecommunications and finance background and
will be a welcome addition to the Board,” Ms Nosworthy continued.
Ms Nosworthy thanked Mr Coote for the important contribution he had made to
the company over the past 4 years. “Adrian was instrumental in building the
Commander business into the country’s pre-eminent provider of communication
solutions to thousands of SME’s, corporates and Government Departments,” Ms
Nosworthy said.
“The fact that Commander has been winning large contracts and industry awards
at one of the most difficult times in our history demonstrates that he has helped
to build an enviable organisation.
“Adrian has led the company through a period of major acquisition and growth
and has developed and articulated a clear strategic direction for the company.
The Board continues to support that strategy as do our many loyal customers
and franchisees.
“I am sure that our many employees, franchisees, customers and suppliers wish
him well for the future. The Board also thanks him for his efforts. He leaves the
company with our support, friendship and best wishes.

 

[ROE]

I'm with Hunter Hall on this one with latest announcement.... I double my stake in CDR today and turn this baby around

Sale to price ratio is too good not to turn it around

 

[ROE]

New CEO just add another 530,000 shares to her holding on the market trade.
Things cant be that bad for her