newsletter 23 - Airea - the key issues for the future 18th november 2014

This blog considers first the possible sources of revival in the business of Airea, and second the important questions we need to ask while holding its shares.
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What could cause a revival for the company?

• Macroeconomic recovery?   This is a distinct possibility.  It has certainly been held back by the recession
• Exit of rivals from the industry?  Unlikely, but if anyone reading this has some knowledge of competitors please let us know.
• Managerial improvement?  They seem to have done a pretty good job so far.  Hopefully they have built firm foundations for future growth.
• Takeover by another firm?  With such a low MCap this is possible.  It could be very attractive at a significant premium to the current price.
• Liquidation? That would be daft.​

Questions I need help with
Can anyone help with the following?

• Are there hidden horrors in the pension fund that I have not cottoned on to?
• Am I right to be optimistic about the pick-up in carpet sales as economic recovery takes hold?  A major doubt is caused by the public expenditure constraints.
• What are competitors doing out there in the market place? Are they better or stronger than Airea?
• Can we trust the inventory figure? A lot hinges on it.
• What is the property really worth?​