AYO unknown

AYO - undervalued but why?

  1. opt
    193 Posts.
    After looking into the fundamentals of this stock I reckon that these guys are worth ~$0.70 hence my opinon that they are undervalued by ~$0.22. My question is why?

    On the integrity side, Amity oversold their sales forecasts and had a few production problems. The sales have improved and there are cautious indications that they will be close to capasity in a few months. However, its still not reflected in the share price. Integrity takes awhile to earn back.

    Another theory is that the market has discounted this company due to its current lack of leadership. The board removed Allchurch from the executive position and the infighting made more than a few mentions in the national press. Dirty laundry never does a share price much good.

    An announcement about the search for a new CEO was made back in June but I have yet to hear even a rumour about an appointment. The pool of experienced, value adding executives with the the kind of international credentials required for listing in Europe is far too shallow in this part of the world and Amity will be hard pressed to come up with incentives to attract the right leader.

    Then again it could be the regional conflict. Australia just announced a travel advisory for Turkey warning people to stay away from hotels and tourist areas.

    Any other theories?
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