Recently job cuts were announced at Shopee and the “seniors” are not going to take pay. All expenses are going to be reduced until the company turns profitable enough to be self-sustaining. But this stock is still a short. Whatever costs cutting they’ve announced is still not aggressive enough and is only meant to pacify the market. Naively thinking that that could help.
In the first place, those “senior management” are most likely those whose compensation components are largely non-cash salary. Then, cutting flight from business to economy is not going to help that much if the airlines they chose are expensive. Like Emirates,SIA, etc. I certainly hope that they weren’t flying people all over the globe previously and thus thinking that such cost cutting is going to be effective.
What can really help? If they announce 30% pay cut across the board. They could have a chance of turning sustainable next year. How did I come out with this figure? Gut feel. Maybe it’s not even enough going by what I know about their offers and how they have been indiscriminately giving increments.
I foresee the stock price will fall before $40.
In the first place, those “senior management” are most likely those whose compensation components are largely non-cash salary. Then, cutting flight from business to economy is not going to help that much if the airlines they chose are expensive. Like Emirates,SIA, etc. I certainly hope that they weren’t flying people all over the globe previously and thus thinking that such cost cutting is going to be effective.
What can really help? If they announce 30% pay cut across the board. They could have a chance of turning sustainable next year. How did I come out with this figure? Gut feel. Maybe it’s not even enough going by what I know about their offers and how they have been indiscriminately giving increments.
I foresee the stock price will fall before $40.
