value or value trap still ?, page-3

Good discussion.

I agree with your sentiments. The writedown is inevitable given the state of the current business and market conditions in paper as a whole.

In saying that, the current share price has arrived here not only due to the financials, but many other factors have weighed heavily on the SP being pushed down, including fear. So to say that the current SP is cheap is the reality, 'but only if' the business truly is solvent and has 'enough in the kitty' to ride itself out of this mess. If it is so, which only time will tell, the SP will most definitely head north. From the info they have released, we would expect one more loss to be reported, with a potential break even or profit after that.

This stock is very unloved at the moment and the board know many eyes are watching closely. If the financial position changed drastically we would most certainly hear about it very quickly.

The main reason I'm in this stock is because they have demonstrated an ability to pay down debts in tough times, which would mean they were not highly leveraged to begin with. They can say many things as most Board members are very good at spinning words, but what cant be fluffed is real tangible actions, like that of paying down debts.

I feel for those that were in this stock long term as their investment has deteriorated greatly.

Reduced debt levels means the overall costs and exposure are reduced, giving flexibility to adapt to much required change.

Best of luck