Photon’s massive hill to climb
Graphs can, of course, be used to prove anything, but this one certainly tells a story about the stock market peformance of Photon, whose shares are currently suspended pending a capital raising.
As both The Australian and Sydney Morning Herald report today, the company – which owns some of Australia’s best known agencies – is in a trading halt while it works on another recapitalisation.
The Google Finance graph tells a dramatic tale of how Photon has been performing against the ASX for the last six months, and of the task facing new CEO Jeremy Phillips.
Business models based on aggregation of a series of small entities into a single structure has proven to be a very flawed approach.
As an ex-Photon group employee I can attest that the attempts to retain your own agency culture in the face of the need to drive business for ‘the man’ is a gigantic fail. The reasons Photon were attracted to many of their acquisitions in the first place have now been put aside by the need to drive revenue. And clearly thats not working.
i knew i should have sold my shares by now….
BlueFreeway here we come…
always thought it was structured like a pyramid marketing scheme
new dude is smart. packer’s bought in. get some shares after new cap raising. cultures can still stand alone even after consolidation.