Sakae    Last:0.089   -

CORE BIZ ABYSS

As forecasted many months earlier, Sakae came in a whopping $13MM loss for 2016 - putting her combined loss since 2010 at $10MM averaging $1.4M loss average per year for past 7 years. Apparent that Sakae has no clue to turn around her core business while her chairman continues to diversify/divest in other non-food-related ventures ( finance, IT n beauty products n trading etc ). Sakae is closing down numbers of outlets in the coming months. FY2017 will see dramatic drops in sales revenue of core business + more writeoff/rationalization costs. All her non-core-ventures would not be able to save her from the red sea. The only savior would be a court-judgement awarding them the $MMs in her suit against Gryphon but even with that award, FY2017 would still be in the RED. Q12017 ( out in May 2017 ) would probably show $millions losses. FY2017 forecast $1MM to $8MM losses with a 30% drop in sales revenue. Compounding the problems, staffs' morales so low. Good staffs probably leaving to work at new expanding outlets at Sushi Express and Genki Sushi.

 

With current ecomonic climate and its yet to be reported high legal and operating costs, I worry Sakae losses in 2016 will be in the tens of millions

Looks like I' m gonna have to accept and write off my investment in Sakae....

 

Core Restaurant Biz ( excludes non-operational legal expenses ) continues to lose $400K per month for several consecutive quarters = indicative that the management had no clue to stop the bleeding. Yet to see any affirmative sign of an effective turn-around-plan for the coming months of economic-downturn. However her competition remains profitable though. Strange that the share price remains unchanged after the poor 1H result. At this trend, Sakae will likely to see $millions loss for 2016.