its a long-dated call option over the oil price.
the sale and lease-back highlights the fact that the operating business isn't making any money.
the question then becomes:
1. can they survive operating at 25-35% of capacity
2. can they expand other parts of the business
3. staff retenstion when fly-in /fly-out for mining is difficult (ie people will leave for the mines in preference to working in perth)
4. work in hand in h2 was smashed ......
will take some time to play out (1-3 yrs)
I would buy on weakness - given its trading at practically cash asset backing (not a true indication, b/c of the working capital within the buss......)
rgds
V_H
News: MCE Matrix Composites & Engineering Posts FY Net Loss After Tax $64.5 MLN, page-3
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Last
33.0¢ |
Change
-0.015(4.35%) |
Mkt cap ! $77.94M | |||
| Open | High | Low | Value | Volume |
| 34.5¢ | 35.5¢ | 33.0¢ | $19.36K | 57.79K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 55480 | 32.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 34.0¢ | 23416 | 2 |
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| Last trade - 12.04pm 09/08/2024 (20 minute delay) ? |
| MCE (ASX) Chart |