No I have not heard any rumours to that effect. I just expected the share price to jump following the announcement of the contract win and it was greeted instead with apathy on the first day and a share price fall on the next day.
I looked back at the company announcements at this time two years ago and they did appear to be regularly announcing contract wins. Even in 2009 they announced a $46m contract win in July and a $51m contract in August so perhaps the latest contracts are nothing to skite about.
Your guess is as good as mine about working capital requirements but after such a bad year I suspect it is in their thoughts. It is not a good time though with the share price so low and it would depend to a large extent on their relationship with their bank. They mentioned quite some time ago that they had reached agreement with their bank for an extension of their loan, subject to seeing the final agreement. Since then however they have announced several times including in the annual accounts that that agreement has still not been finalised and is now expected by the end of September. We are very close to the end of September and still no extension agreement as far as I can see.
Sorry to be pessimistic but this delay in signing the loan agreement is a concern.
As to what do you do if there is a capital raising. Unfortunately any capital raising in these circumstances would put pressure on the share price. Lets hope we see an extension of the loan agreement sorted out and signed off.
GPASAS
NOD Price at posting:
12.9¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)