It doesn't get much worse than this - SIT - today dropped another 17% to 51.9p. Just 3 months ago it was worth well over 300.

This follows the resignation of the CEO Jon Slangerup yesterday.
At the same time, the group announced a programme to cut 1.6 mln usd in costs - some 10 pct of overheads - mainly through staff reductions, and reiterated its revenue guidance.

'We re-confirm our revenue guidance of growth in excess of 80 pct for 2006,' said chief financial officer John Palumbo. 'The headcount reduction will not impact customer deliverables or the company's core business activities.'

As I've argued here before, the company has had problems translating from the USA its business model of providing solar roofing membrane solutions to the European market. What is unforgiveable though is that with some of their large contracts, losses of up to 50% have been made. Why would you sign a loss-making contract?

SIT's results for FY05, released on 25 May 2006, revealed a cash balance of USD 2.2m with full-year losses of USD 17.2m.

The question is, how much further down can SIT go before or if it starts to recover?