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Tarvold

22,834 Posts.

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23/07/24

15:09

Post #: 74875528
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Originally posted by psi81: ↑

Vs total equity. Debt to equity ratio.

Regardless, I mean the debt liability is high, which ordinarily wouldn't bother me (it is a loan company after all) but I'm wary of debt covenants if the market goes south in a hurry, particularly if they get smacked with a hefty fine from the legal issues.

Usually as a mushroom shareholder the first you're aware of debt covenants is when they announce "we're in breach of covenants." If the loans get called in, that's where trouble starts.

I'm not suggesting SVR is in any imminent danger of that. I'm just saying high debt load decreases their ability to weather shocks. As a retail holder it can be the difference between a few years of no dividends vs losing nearly all your investment, if they're forced to raise equity in a firesale.

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SVR have consistently stated they have low gearing vs the rest of the industry.
I'm not concerned with the gearing unless there's a catastropic financial event, in which case SVR won't be alone in being in trouble.

SVR Price at posting: $1.08 Sentiment: Buy Disclosure: Held
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(20min delay)
Last $1.35		Change 0.010(0.75%)		Mkt cap ! $279.2M

Open	High	Low	Value	Volume
$1.34	$1.35	$1.33	$138.9K	103.8K

Buyers (Bids)

No.	Vol.	Price($)
1	35	$1.42

Sellers (Offers)

Price($)	Vol.	No.
$1.22	4818	1

View Market Depth

No.	Vol.	Price($)
3	6648	1.335
2	2151	1.310
1	8000	1.300
1	800	1.285
1	15670	1.275

Price($)	Vol.	No.
1.345	5045	5
1.350	31068	4
1.355	2710	5
1.360	17277	4
1.365	1772	3

Last trade - 15.59pm 03/10/2024 (20 minute delay)

SVR (ASX) Chart