CAJ Financial Analysis, page-10

Wow, i cannot believe how bad this report was, and I'm stoked that I was able to get out this morning at $0.19 for a ~50% loss.

I really liked the company before, and when they fell i re-did my analysis on what i thought was a worst case scenario and only bought a small position, but this was much worse. They have made too many acquisitions, loaded up on too much debt and it have done all this at exactly the wrong time.

They will be raising capital in the next six months, or else I believe they will be very close to breaching their debt covenants - by my calcs net debt/ebitda will be pushing 3.6x at 30/6/16 based on 1H earnings, and that's assuming the bank backs out all of the acquisition costs that went through the P&L and there is no further deterioration in 2H. Also curious as to where they are going to get US$10m (A$14m) from for the Enlitic shares...this will increase their net debt to ~A$90m and put further pressure on the covenants.