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14:40
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Originally posted by joewolf:
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I think that anyone taking advice based upon posters comments is really taking advice from a person with an agenda. If you are an investor that holds like I am then, in fact, you are wanting to see the merits of the company. If you are not an investor there are many reasons to suggest that it will go lower. Not the least of which is short selling. Since 28 Feb 500k shares extra have gone into short selling. That data was up to 12 March it's now 20 March. Reality would suggest that debt collectors would have a harder time collecting a debt. But as the announcement said they have $170 million in cash. They have indicated that they have seen no decline to date, I am assuming that as we are almost at the end of the month and that receipts should remain normal until end march. Thus assuming you keep everyone employed (illogical) and you only take out non-cash expenses ( Depreciation) and obviously don't have any increase in provision, then the annual cash cost of doing nothing it around $200 to $215 million. They would have generated around $28 million in the first quarter and have $170 million so they should survive for a year. I would bet that they have a lot of ways to mitigate expenses - remember the MD was the one that did that in the GFC. If you think that this is still going to be going on in a year then understand we are all toast because not even the government has that much ammunition. The issue here is that its a company that it's easy to see won't do well in the short term.
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They don't have $170 million in cash that total covers cash and undrawn credit facilities.
(20min delay)