@13th I understand the previous facility had a very large line fee, something in the order of $3-400k. Not sure about you, but I am generally looking for management that are very careful with their shareholders funds, taking the foot off the accelerator for 6 or 8 weeks to avoid a needless $400k cost sounds eminently sensible to me.
Not sure what the "decline in margins" you're discussing are either, margins rose very sharply on the quarter. This seems to me like the business model acting exactly as designed, with improving margins when wholesale costs fall and falling margins when wholesale costs rise. Such a feature should mean that although revenues are quite unpredictable, profitability should be significantly more predictable.
As to what the share price will do, you are probably right that it will fall this morning. A lot depends on the marginal expectations of shareholders. Those that are purely here to see a sharply rising revenue number each quarter will almost certainly be spooked and run for the exit. Those that are looking to see a maturing business model that produces steadily growing profits may be more circumspect - Eternalgrowth
LPE Price at posting:
82.0¢ Sentiment: Buy Disclosure: Held
