People should read it and form their own opinion. That is what investment is about, whereby you assess the risk versus potential reward. If on reading the announcements yourself you don’t want to be in the stock fair enough but don’t go paraphrasing an announcement into negative comments and projecting those thoughts onto others.
I know this is a forum and emotions do run high at times, but comments really should be subjective to the content of the announcement.
It will be interesting to see the full 4C for Q4 to be able to have a full assessment, however based on this announcement the negative cash flow is significantly down to 70k USD for the quarter and there should be around 100k USD in the bank still. It looks like cash inflow was up 120k USD on normal activities not including the tax rebate. This means more cash has flowed into the business this quarter than previous quarters.
At the moment it looks like without additional cash injection from some means, such as customer receivables, sale of Australian asset, or other capital injection that there is only enough cash for 1 more quarter.
The company has already put in place access for funds for receivables, and from the announcement it looks like there might be some potential cash flow adjustment from a potential sale of the Australian business, and who knows the directors might put in some additional capital or a successful investment capital raise might also be done. So the company might have this covered.
Although sales seem to be a bit stagnant, there are some encouraging signs in other areas where improvements have been made. Can the company can build an order book early in this first half?… that will be the make or break question. I think that is the take away and concern from the announcement, the order outlook is unknown at this time.
There are many cases where businesses have been able to turn around from such a position, maybe just a little more time is needed, who knows a couple of good orders in Q1 might be all it takes.
RAN Price at posting:
0.6¢ Sentiment: Hold Disclosure: Held
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