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21/02/17
21:29
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Originally posted by asb83
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It may be currently below cash value, however, it won't be for long. They forecast a whopping $4.5m cash burn in the current quarter. Assuming they make <$1m cash, that's $3.5m+ cash outflow, so cash assets at the end of the current quarter is ~$30m. Say they still burn $4.5m in the next quarter and only make <$1m cash. Then the current share price is above cash value. The market values a company based on its anticipated future outlook, not the current/past.
There were some big sellers at the end today at 18c - over 2 million shares. I wonder if they want to get out or are pushing weak hands. I had some buys at 17/17.5c but have pulled them. I'll wait for the quarterly to see if it has signs of life. I'd much rather pay a premium on a good result than catch a falling knife.
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Assumed that iceberg was to close it on support 17.5c
Obviously significant to someone.
Cash burn was said to be decreasing substantially last I heard.