First you use 5 m usd monthly Cashflow - if you used 40m usd it would be around 3.4 m usd
Second you ignore the fact that the cash they quote is partly restricted - how much - don't know but could be half or more .
Third you ignore the 2.7 m usd paid out , you ignore the fact that TAP may have had final payments on Manora paid in last few weeks and they have upto 22m usd ( which is more than all of it's current cash ) that looks like it will be paid out soonish
Fourth - you ignore the footnote that TAP are subject to a deferral fee and higher interest rate
They are fully drawn on debt,and cash is artificially high as they have deferred debt repayment , quote all cash including restricted and have delayed payments due of upto 22m usd .
No company in their right mind will continue to operate with such a tight balance sheet made tighter by the fact that the Thai dude has stopped paying the 10m usd . I wonder whether in TAPs cash flow projections of Manora whether they include the 10 m usd being paid back , something tells me they do!!!
I am not wanting a CR , I am simply suggesting in my experience one is likely .
TAP Price at posting:
23.0¢ Sentiment: None Disclosure: Not Held
