paulpommy, the ASX is obliged to issue certain queries when certain thresholds are set-off, regardless of the true circumstance. In this case, an Appendix 5B query is set off using a formula similar to the following:
IF( ('Previous quarter net cash flow usage' * 2) / ('Current cash at hand') > 1, SEND APPENDIX 5B QUERY, DO NOTHING )
The ASX are not implying that there is a "definate" (sic) problem, and that is precisely the reason why they require companies to *respond* to the query. Your reasoning is not logical, because if the ASX had saw a "definate" (sic) problem, there would be no need to issue a query -- they would simply have either halted MHL's trading, or let it continue trading.
Please let me know if you object to my points above.
MHL Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
