Read quick. Guaranteed to be TOU'd (even though time will show that everything below is accurate)
Redrock Don't be hard on LEqL. He made a reasonable investment decision based on publicly available information at the time, and should reasonably expect the information provided by an ASX listed company would be more reliable than views provided by anonymous posters to HC
LEqL The MD has been feeding the market nothing but BS for over a year now. ATI is terminal. Should have shut down long ago. They still haven't figured out how to make the plant work, and are low on cash as always. There is so much debt ahead of the shares now, it's virtually impossible for shareholders to ever see any profits. And even the bonds are trading hands at a 50%+ discount to face value. The last true believer is Salim/Droxford, and this will fall over the day he loses faith.
This has been a confidence game for over a year now. The "convincer" was the MD putting up millions to buy shares in that period. Reality is that he's playing with someone else's money. Must be Salim from Indonesia - the only one crazy enough to keep lending money now, so it's the only logical explanation.
I was wrong in predicting bankruptcy earlier this year (twice). Now it lools like a much uglier ending is in the works. What kind of business people get filthy rich in Indonesia under Suharto. What happens when an Australian mining promoter tells you a pack of lies to get you to invest over and over again, and then loses all of it. Do you just write off $100M+ as an unlucky investment and move on, or do you go looking for some kind of payback.
This is turning into a dramatic thriller. Salim's dad died a few months ago, so we're witnessing the shirtsleeves-to-shirtsleeves in three generations story. We also have the former accountant MD "breaking bad" and becoming a dodgy promoter, and losing nearly half a billion dollars of other people's money. All we need is a bit of sex to spice things up and it's bestseller material.
ATI Price at posting:
34.0¢ Sentiment: LT Sell Disclosure: Not Held
