The disturbing feature of the share price is that there is no buying support. No one appears to think the company is a bargain.
They bought Maggie Beers 48% for $15M. Paris Creek for $34M and St David Dairy for $15.25M. Total $64.25M.
These purchases were over the past 2 years and 9 months.
Today LON is capitalized at $31M.
Anyone buying a share today gets those businesses for less than half-price. That seems to be a bargain, but not enough to cause any buying.
In the next report I think we may see businesses doing ok but a large head office sucking profits out on LON.
I would assume that at this share price there will be no further acquisitions because this would require more capital raising and would destroy our equity. They will need to get these businesses firing and the LON share price back up around 70c before they raise any more capital.
