The real question is why they flicked the DRP switch, given they finished the FY2019 year with more than $53m in cash (and no debt), along with $64m in Work-in-Progress, offset by $24m in Payables, Net of Receivables) and $13m in Deferred Revenue.
Current Assets exceeds Current Liabilities by $68m and exceeds Total Liabilities by $59m
In historical context, Current Assets Less Current Liabilities is at an all-time high:
So, again, why the need to conserve capital?
One obvious reason would be to fund further increases in WiP.
That would, I think, be a good reason.
(But even then, it's a highly bankable business in the sweet spot of its business cycle, so the banks would have been more than willing, and on decent terms, to provide it with a $10m or $15m working capital facility.)
Another possible reason would be to build firepower for a pending acquisition.
Which I don't think would be a good reason.
Either way, at ~3.5x EV/EBITDA, equity is a pretty expensive source of capital
.
- Forums
- ASX - By Stock
- SXE
- Ann: DRP Shortfall Placement
Ann: DRP Shortfall Placement, page-4
-
- There are more pages in this discussion • 4 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add SXE (ASX) to my watchlist
(20min delay)
|
|||||
Last
$1.73 |
Change
0.045(2.67%) |
Mkt cap ! $455.3M |
Open | High | Low | Value | Volume |
$1.70 | $1.74 | $1.69 | $442.5K | 257.9K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 809 | $1.72 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$1.73 | 12699 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 2088 | 1.705 |
1 | 3800 | 1.690 |
1 | 499 | 1.685 |
1 | 8928 | 1.680 |
3 | 27299 | 1.670 |
Price($) | Vol. | No. |
---|---|---|
1.730 | 9774 | 1 |
1.750 | 5555 | 1 |
1.770 | 15000 | 1 |
1.785 | 1513 | 1 |
1.790 | 10550 | 2 |
Last trade - 16.10pm 28/06/2024 (20 minute delay) ? |
Featured News
SXE (ASX) Chart |
The Watchlist
LU7
LITHIUM UNIVERSE LIMITED
Alex Hanly, CEO
Alex Hanly
CEO
SPONSORED BY The Market Online