1. the company expects a rebound in sales, driven by inc spend in offshore oil&gas development in mostly aust waters
2. its inventory cycle is 6 months +/-
3. it needed some additional capital to fund this - either debt / or equity or asset sales
agree 100% that the sale price was low-end (as you say - limited mk), and this will inc the "fixed cost" part of the equation.....
however - it may be preferable to do a sale and lease back, rather than take on bank debt (in a shaky time for the oil patch) or issue new equity.
while I also agree re 'milestone for turnarounds.......this one has a decent product, and is leveraged to any rebound in energy prices.... (12m, 18m ????)
should get smacked next week ........with the partial opec/Russia deal.
rgds
V_H
MCE Price at posting:
24.5¢ Sentiment: Buy Disclosure: Not Held
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