1. Most Discussed
  2. Gainers & Losers
BIL 0.0¢

the company you thought you knew

  1. singas

    2,961 Posts.

    Smithbarneys view......
    Company Update
    CK bows out
    † The appointment of David Turner (current CFO) to replace CK Chow as CEO, is likely to receive a mixed reaction in our view. Some may believe he's too tainted with the company's poor performance over the last two years, while others may be reassured it's someone they know and has had a long connection (10 yrs) with its core business.

    † Our biggest fear surrounding the often-speculated departure of Chow has been the irresistible prospect the replacement may have to make further write downs to restructure the business.

    † While this could NEVER be ruled out (just look at Brambles track record), we believe it will be hard for Turner to justify further write-downs as he has been at the frontline of those already taken.

    † The ongoing challenge for Turner will be to turn solid revenue growth into strong cash flow and sustainable profit growth. Time will tell if he turns out to be the John Howard of Australian politics, given Turner had already announced he would depart in late 2004.

    † We continue to believe that the restructuring programs being introduced are the right ones, that the improvement in systems and accountability is promising and that by 2005, Brambles should be the company you thought you owned (and paid up for) in 2001/2002.

    † Encouragingly, the company reconfirmed its outlook guidance for FY04 and that no new reorganization is currently planned and that the initiatives to improve CHEP Europe remain on track. We maintain our HOLD, Medium Risk rating and our $5.26 target price.

Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.


Thank you for visiting HotCopper

We have detected that you are running ad blocking software.

HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.