There is a lot to be said for the cash burn and lack of revenue. Sure price per kg has increased, but nothing usual, considering all food is increasing in price. I'm not clear where the margin has gone though.
In terms of capital, I can't see them getting it on the domestic market in this environment. Investors are chasing returns and I can't see that in MCAs future.
Alternate is foreign investment and as you say selling off assets. Leasing what little assets they have back, leaves a cost problem, thier margins dont appear to support.
They have already gone down the debt finance road and are quicky chewing through it, like dollar bills at a stripper club. The interest on that debt doesn't seem to be public but I will bet it's not sustainable.
They have already set up golden handshakes in case of a partial take-over. I think that may be their only hope. But who really knows? With all the smoke and mirrors, it's going to take some magic to save this one.
Last edited by CaptSlugger:
Spelling correction16/02/24
MCA Price at posting:
13.0¢ Sentiment: Sell Disclosure: Not Held
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