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EHL

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0.67%

74.0¢ emeco holdings limited

Ann: Investor conference presentation and FY22 guidance update, page-25

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rollacoaster

5,719 Posts.

1600

18/07/22

17:22

Post #: 62593645
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Originally posted by Chao88 ↑

We need to evaluate EHL with an open lens. Management have made a lot of sensible decisions. Especially in the current environment.

For example, they have extinguished the USD denominated debt at 9.25% and replaced it with 6.25%.

They have saved shareholders millions in currency/interest. The AUD/USD is reaching new lows recently trading at 0.68, had we kept the USD debt, they will be forking out millions more in FX losses, albeit they will have hedging to offset that but that comes at a price and hedges do not last forever.

The interest saving is also huge. The current RBA cash rate increased 50 basis and is expected to do that again in August to reach 1.85%. The cost of debt is now 440 basis above the August expected cash rate and is fixed. If rates continue to rise the discount on a similar priced note in this market is huge.

In the end management can not control the share price, they run the business, provided they continue to make decisions which generate value overtime then that how they should be assessed.

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Correct - hard to fault management and board over past 12-24 months.

CEO has a large stake in EHL so is financially aligned with us all

EHL Price at posting: 74.0¢ Sentiment: Buy Disclosure: Not Held
3 Upvote

1 Great analysis

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(20min delay)
Last 74.0¢		Change -0.005(0.67%)		Mkt cap ! $383.5M

Open	High	Low	Value	Volume
74.0¢	74.5¢	73.0¢	$109.3K	147.9K

Buyers (Bids)

No.	Vol.	Price($)
2	49854	73.0¢

Sellers (Offers)

Price($)	Vol.	No.
75.0¢	22592	4

View Market Depth

No.	Vol.	Price($)
2	49854	0.730
1	2879	0.725
1	10000	0.720
1	14000	0.710
1	710	0.705

Price($)	Vol.	No.
0.750	22592	4
0.790	4310	1
0.795	46042	5
0.800	94963	4
0.815	1500	1

Last trade - 16.10pm 18/11/2024 (20 minute delay)

EHL (ASX) Chart