neptune a buy , page-15

Autosime, I'm just doing research and reporting on the facts.

According to the annual report, Neptune currently earns 140m revenue. This covers all its costs, including loan repayments, but no profit for 2010FY.

Neptune has not defaulted on any loans. All its loan payments, employees and costs are paid in full. NWS has asked NAB to refinance (consolidate) its loans (40m). NWS also has 40m liability (trade payables) from acquired operations.

The 80m from the massive placement is obviously for clearing all Neptune's debts so that it owes nothing!

The question that needs to be asked, is it better to do a massive placement and clear the loans now, when the profit and the share price is low, or would it be better to do this when the profit and share price is higher?