I have asked for my previous post to be removed- it was not...

I have asked for my previous post to be removed- it was not informed enough by research. Shall I blame the Perth heat? Thank you.

I just listened to the 31 August 2023 FY23 Results conference call on Open Briefing. There were several important points analysts' questions from the 29 minute mark.

The important questions included the low expected margins for FY24 and 25- and perhaps even FY26.

There were questions around forecast cash movements. Capex will be high going forward- with the new contract. The timing of capex on that land they purchased- when and why they build on it- is to me still as vague as the proverbial.

Cash movements includes treatment of the T-ATS. The provision for the loss was provided for in the 23FY- fair enough- but the cash effect will be in subsequent years.

Low margins for 24 and 25FYs- a question mark about timing of cash going forward.

The SP was smashed on 1 September.

SPs go up and down on contract wins and etc- pay attention to those that respond to earnings reveals- on charts they get buried on subsequent positioning for dividends and ex-dividend dates- but earnings reveals influence the SP far beyond subsequent noise and macro moves.

Earnings guidance acts like gravity here- ready to bring back the SP whenever the punters get exited about contract wins and preening pollies.

So where are we?

Earnings guidance is little better, if it is, than a risk free return from a term deposit.

Cash- could capex come from sources other than their balance sheet and receipts? That has to be a risk.

IMHO DYOR