It would be absolute folly to wait for a share price downward spiral before a CR. NCM have undrawn debt facilities so I expect no CR in the near future. However, looking at the debt maturity chart, the $1b due in 2015 may be repaid with the proceeds of a capital raising?I would imagine that the Board would like to see the share price move back above $15 and the POG to move back up.
The next couple of months look rocky and negative sentiment is a self-fulfilling momentum builder. Thirty years of reserves, capex reducing substantially and good operating cashflow will ultimately result in NCM being a mover and shaker again.This is a stock to buy now and revisit in a couple of years. Heads will probably roll, the AGM will be ugly but the long-term fundamentals are still there. In the meantime the brokers will downgrade and pump the negative sentiment so how low this will go is anyone's guess in the near term?
NCM Price at posting:
$11.70 Sentiment: LT Buy Disclosure: Not Held
