I've always bought companies with little to no debt.
Bought into A40 because I thought they had a very small and manageable debt, which can be easily paid off with a small capital raise.
i stopped averaging down as I know that the company is treading on too fine of a line at the moment, margins were too slim for the bottom line to be in profit. Was waiting for a rights issue to pay off the debts, which was the time I would average down my last batch. But rights issue didn't come, a placement happened instead at 20 cents, valuing the company at well over 250mil. My shares were diluted, but the debt was not repaid, thus i continued waiting, averaged down a small batch at .13 to get my cost below the placement price, cos you know, it's always better to undercut the big boys, that's the perks of being a retail shareholder.
This turn of events became such a big joke that I ain't even mad about losing my money over.
40 million dollar debt that brought a 250mil dollar company to its knees, here's how it happened!
Absolute work of art.
- Forums
- ASX - By Stock
- A40
- Ann: Appointment of Administrators
Ann: Appointment of Administrators, page-125
-
- There are more pages in this discussion • 64 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add A40 (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
AHK
ARK MINES LIMITED
Ben Emery, Executive Director
Ben Emery
Executive Director
SPONSORED BY The Market Online