1. They had just over $1m in the bank at the end of December. Given that their cash burn is over $1m per quarter how much do you think will be left of the $1m from the notes at the end of March?
2. I will give management their due, they are looking at the business to turn it around but it does not give me confidence when current liabilities at the end of December were $2.331m including taxation liabilities that are now on an extended payment plan, plus payments to other creditors are overdue and outside of normal trading terms. They have stated they expect to be able to pay undisputed creditors though.
3. My stop loss was hit recently on CXN and I exited my position as per my trading plan with no emotion. That's what makes money when you ride the winners and cut the losers quickly.
Cheers
Cobby
CXN Price at posting:
1.2¢ Sentiment: Sell Disclosure: Not Held
