Opened up a position today in the high 20s just off the day's lows...
not too much mind, there's obviously risks here, but if this returns to calmer waters in future, it'll be worth a fair chunk of my portfolio then.
Downside risk doesn't seem too bad, its trading a good bit below NTA... but who knows what their NTA really is.
Its also trading about 33% below the recent cap raise
made 31 cps earnings in FY19, unlikely to make anything this year or very much next year, but they have cash reserves from the CR to ride out maybe two more years of this. They are still experiencing some demand, but wasn't good news that Mel went back into lockdown and cut off from the rest of the country as that's where most of their offices are. Risky play for sure.
Of course if it returns anywhere close to 31cps again there will be a significant capital gain... enough to make buying a tiny amount today worthwhile.
Anyone else in this? thoughts?
VOL Price at posting:
29.5¢ Sentiment: None Disclosure: Held
