SXL Time to Accumulate, page-427

yeah the market is fascinating at the moment.
I would be concerned SXL if it had high debt levels going into a possible recession, but it doesn't.


Have a look at its Dec21 balance sheet:
Current Assets $164m less current liabilities: $77m = surplus of $87m

Borrowings: $127m less surplus $87 = $40m

Managements own forecast of EBITDA for FY22: $85-$90m.

We can see a big downturn in advertising and still things would be fine.
(Note that I use surplus calculations rather than the standard net debt, as this figure is even more conservative, as it factors in all current liabilities).

I topped up again today, position now 2% of the portfolio.