Ann: Appointment of Administrators, page-141

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thebeautifulstyle

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30/08/19

03:12

Post #: 40231623
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Originally posted by NBORT: ↑

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.

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great post mate. Youve hit the nail on the head.
And guess what the same thing is now happening over at PLS.
They could have raised at 80c, when the share was trading there for ages,
while the Li price was plumetting, and analysts were predicting over-supply.
However they didnt react, and they could have easily wiped the debt back then.

A40 Price at posting: 8.2¢ Sentiment: None Disclosure: Not Held
3 Upvote

0 Great analysis

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Ann: Appointment of Administrators, page-141

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