Learnings from Cobham15 Jan 2021 20:27
The current Bab**** CEO came into Cobham to sort that company out in 2016 and if you read the Cobham preliminary results document from March 2017 much of the process then is the same as being followed now. Blaming poor controls, accounting, bad contracts. They wrote off huge sums in that first results package but also launched a rights issue. I took up the rights, the shares bottomed a while later but the company then got taken over at more than double the rights price and I got out slightly in profit overall. I back this CEO. The CEO must want to clean out any bad past contracts, take everything out that could be said to be doubtful. Prepare the company for better times.
I would argue the Cobham circumstances felt far worse than Bab**** does now. Debt especially. This CEO seems to follow a pattern of dealing with things in a similar fashion. I think in the end it will recover nicely but not for a while.