I foresee the coming MYR result as better than the market's low expectations, but not because of a successful restructure. Capital raised in the rights issue was not for business expansion, it was to restore working capital, siphoned off in the private equity phase.
Retailers need very big liquid working capital positions to play suppliers, customers and rivals. Peeling a few per cent off suppliers in order timing and payment timing is useful work. So is maintaining competitive pricing perceptions and giving the buying group the flexibility to move quickly to shift the offering.
The $221m raised in November went directly to this task. It is too early for the full fruits of this to show, but most should be there. This is why I am optimistic about MYR even though the shorts think otherwise.
GLTA
Ash
MYR Price at posting:
$1.30 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)