Are you aware of the large write down that has already occured?
Star Vegas is imporoving quarter on quarter so it would be interesting if the auditors wanted further write downs.
The debt was refinanced late last year to much smaller 6 monthly repayments over a further 3 years. I suggest you read that announcement.
Operating cash flow is positive and likely improving with broader business performance, and there was a considerable cash balance at the half year.
Share issues required is rubbish. Even in it's current state, DNA's operating cash flow can just about service the refinanced debt repayments.
And by the way, you realise there was a modest buy back going on earlier this year?
A director and the MD have been purchasing on market, albiet modestly. Hardly a sign the balance sheet needs repairing with a capital raise, goose.
Another positive catalyst you probably don't know about is the arbitration against the former Star Vegas vendors. As you're probably not aware, significant damages are being pursued for breach of non compete clause in the purchase contract.
The Thai vendor directly competed with Star Vegas taking VIP business and decimating the Star's VIP junket business, literally next door. That's more or less what led to the write down. DNA are suing them for USD120m and have even successfully frozen their 18% shareholding in the company.
The share price is way down because it is tracking the earnings of the business. Which is why after the quarterly update the share price has re-rated to about 25c from about 20c. It will further improve if the quarterly runrate is improving in the full year results.
The bottom is in already mate. Institutional shareholders were buying around 20c adding to their positions. This is a further sign there is confidence that the business performance has bottomed, and is now turning around.
