SBN 0.00% 0.0¢ sun biomedical limited

company restructure

  1. 1,017 Posts.
    Good morning all,

    I see this announcement as a positive although I understand how many may be dispapointed because they expected a Mexico update!
    Small companies first grow into medium sized companies and then hopefully into larger ones. Along the way, the structures must change to accomodate this growth. Today's announcement was far more encouraging to me than any Mexico update (which you will get on Thursday) because it indicates to me that the Board of SBN are prepared to make the critical decisions, one of which involved the realignment of a structure that supported a cost base that was out of balance and certainly not at the hub of its growth point. Therefore, personally I would buy that announcement and I have. Everything has been said about the Mexico deal, SBN are the preferred supplier to the DDP in schools and the DDP was officially launched last week in Mexico. I would be looking for some reference to reorders in Thursday's update and then indulging in a little extrapolation as to what that may in fact mean?

    I think that closing the Melbourne office is an excellent decision since Sun Biomedical already has an office and R&D facilities in the US. Afterall, apart from its ownership structure, SBN is essentially a US company. My major concern is the issue of an investor relations unit for SBN. SBN certainly need to provide a means through which current shareholders/investors can source information on progress and new iniatives going forward.

    I shall patiently await the operations update that will be released on Thursday but I find today's decision to realign operations most encouraging.

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