I have seen them reducing corporate debt through the raising....

I have seen them reducing corporate debt through the raising. But I'd like to see it reducing from profits. That would increase confidence for me.

The HY announcement showed NPAT as being normal, $6m. About the same as the 2 halves last year. But no financials were shown yet for me to confirm whether the corporate debt is decreasing (to reduce the expensive interest costs).

In the prior period, the NPAT was not put towards the corporate debt, but toward increasing cash on hand, which creates a new question - are the funding facilities running into trouble (eg. not being renewed, or having stricter equity requirements), demanding higher cash on hand? Otherwise why not put it towards the expensive corporate debt?

Also, why was NPAT roughly stable, when fees/interest on the corporate debt should be down (after the raising)? Though a possible explanation - the accounting rules creating extra provisions on the recent resumption of growth in the loan book.


So I have not been buying lately. I already have a lot, and am looking to see a decrease in risk (falling corporate debt, or at least improving ratios relative to the debt covenants).


Me not buying is one example of why the SP is not up. SP being up requires at least some people to be rushing to buy, instead of holding off.