They've dramatically reduced the size of the business until international travel restrictions are lifted. They probably believe they can eke out cash flow positive (no guidance of course) , based on domestic rentals primarily in Aus/NZ & Canada , historically only 20/30% of earnings but now likely 60% of earnings on a much reduced capital/cost base. They have made extensive use of the govt support programs which is only proper, they don't appear to have missed anything there. With $26 m cash and low bank debt, we look ok to avoid an equity raise having sold the US fleet, but this is always a small chance ....
But at the end of the day there is so much earnings uncertainty from qtr to qtr in the travel & leisure sector that mkt will heavily discount until we have a vaccine, which shouldn't be too far away though.
Technically we are still in a bearish trend while we fail to close above 30 cents.. I have been accumulating 25/26 area, I do think we will re rate when a vaccine turns up
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