Wrong strategy for these tough macroeconomic times10 Aug 2025 08:43
Is why this stock is doing so very badly!
The wet dream was a turnaround based upon high margins, AI pastures of plenty and big money savings from aggressive cost cutting measures βοΈ
What's emerging is a death spiral of doom π΅βπ« - more jam tomorrow narratives, if one can stomach the nauseating drops and remain wedded to the eternal turnaround promises that is!
So why is CPI still falling? Simply put its because the strategy is all wrong for the current times IMO.
Margin targets should have been set at 2.5-5%, and not 4-6% - it's very clear the pursuit of overly high margins has caused sales deals being done to plummet. Instead of choosing to make deals the sales dept has repeatedly been saying 'no deal'. This has been the biggest single contributer to the revenue drops! With these falling revenues there's been much less cash for undertaking cost cutting, and insufficient fiscal firepower to make the big investments into AI, staff pay, training and IT equipment upgrades too.
CPI has become much less competitive and rivals are taking CPI's market share.
DYOR - IMO