I think while there are some similarities to the OZL situation I think this one differs on one major point. The suspension from OZL came as a result of the GFC hitting us suddenly and commodity prices going into free fall at a time no one believed it was going to happen. For them it was all about digesting the problem as much as working to a solution.
For us here at MDT this is a problem that could be seen on the horizon for 2 years. This has left plenty of time for negotiations to take place with lenders, cap raising or equity injection.
Up to this point I think we have all provided faith to the management that because these options have not being taken it was because they where unnecessary and better options where available.
I think now it has been suspended from trading. Its clear there aren't any good options available as management would have actioned this rather then taken a suspension.
If you look at this situation we are now in logically. This like missing paying off your home loan. You wouldn't put yourself into that position unless you really had no option.
If you're a billion dollar company you don't go into suspension if you have any reasonable deal on the table to hold out for a better option. You'd get hung out to dry by shareholders.
Honestly my firm believe is the longer this goes on the worse the outcome will be.
Do I hope I'm wrong hell yeh! For mine and everyone else's sake who holds stock. If we do come out of this ok we got some good positives to look forward too. We have often moved in sync with the likes of VPG and CER they have both just recently broke though long held resistance levels.
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