Davey, look deeper into the numbers and do sensitivity analysis. If they have a small decrease in revenue and small increase in salaries they cannot cover the interest payments and they would make a loss. They have negative cashflow and current borrowings have blown out from $69 mil to $160 mil.
They are facing margin erosion and with the recent bad weather in the east coast you have a lot of employee's twiddling their thumbs but no revenue coming in.
The CEO has quit without an explanation and given the company's financial position they amazingly had the balls to pay a dividend. The share price started sliding well before this subprime rubbish and imho the market has got this right.
77c too cheap to ignore, page-8
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