Absolutely right to stop paying dividend and preserve cash before they breach their own covenants but they shouldn't have done buy back when share price was above $1.2 as well so it is incorrect to say the management is prudent !
I would personally won't reduce debt until healthscope issue sorted out so keep increasing cash balance for any uncertainity and once sorted out then reduce the debt and keep the gearing target to 25% maximum ! reduce ongoing dividend to until gearing is not lowered to 25% target ..!
Poor performance of HCW management is clearly visible way before Healthscope trouble started and foolishly even did buy-back above $1.2 ... !
HCW Price at posting:
73.5¢ Sentiment: None Disclosure: Not Held
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