I doubt API will go belly up- most companies aren't allowed to do that, if you know what I mean- they can do a massive capital raising (a la like Hasties will be doing), or could get bought out by private equity, or even, in this case, SIP!
API have a SP of 31c, net tangible assets of 89c per share, and a P/E ratio of 6.08, according to my trading platform. Knowing close to nothing of FA, I do know that API must be looking cheap if predators were interested.
... says "Rival Australian Pharmaceutical Industries (API, 31c) reports on April 20 but has already flagged a poor result because of Queensland flood disruptions, the Pfizer factor, depressed consumer spending and non-prescription pharma competition from Woolworths and Coles."
A poor result might mean an even further depressed SP for API. Unless API is going to disappear, I might take a punt on it then, because I just reckon bottom-feeders galore will be doing the same thing- even Orbis could switch alliances once SIP reaches "full value", whatever that will be.
SIP Price at posting:
46.0¢ Sentiment: None Disclosure: Held
