Always pays to consider broker recommendationswith a healthy...

Always pays to consider broker recommendations
with a healthy degree of skepticism. Who says they
aren’t one of the shorters offloading to the next bunch
of mug punter retails getting caught up in rise followed
by a substantial fall thus entrapping them almost
immediately in an paper loss making investment. Surely
the alarm bells are beginning to ring loud and clear for
most investors caught up in this debacle. Reminds me of
SGH all over again. Grandiose plans enacted in another
country by a poorly qualified CEO who seems clueless
about what he’s doing and most importantly racking up
absurd debts on the Mayne credit card. When I posted about
debt a couple of years ago I was shot down in flames. Now
perhaps people will begin to understand what high debt
equals with dwindling profits in an environment unsupportive
of historically low interest rates. Most retails are focused on
blue skies ahead and are failing to see the debt crisis about
to load up onto Mayne’s balance sheet. This is the type of
irrational exuberance being peddled by the likes of Charts
and is usually the final stage prior to a reality check which is
under way currently and interest rates haven’t even budged
yet. I was caught up in that for a while and then I saw through
SR’s smoke and mirrors. I suspect Myx will not survive the
upswing in the interest rate cycle. He’d rather pump 10’s of
millions into an advertising campaign than reduce debt and
that is a dangerous attitude to have with debt. Hope I’m wrong
but I doubt it. As I said yesterday even trading this company is
looking dangerous given the shorts are pounding it in to submission.
Shorts do not have to cover if a company fails.