It would be most unusual for any company to call a trading halt because they are having a normal board meeting. It must be implied therefore that decisions that will be made at the Board Meeting that impact the Company substantially. I suspect the key issue will be solvency of CQU and provided the Directors believe the Company is solvent they will rid themselves of loss making assets and retrench non essential staff. If the Directors believe the Company is not solvent they would have the choice of calling in a partner at a huge dilution or putting the company into administration.
If the Company were run by experienced professionals, and not by wannabe professionals, I would opt that they will not face administration just yet. Right now I don't have a feeling either way though my gut feeling is its a 50 50 call on administration or not.
If anyone has another other ideas, please share them.
CQU Price at posting:
1.5¢ Sentiment: None Disclosure: Held
