When margins are squeezed and cost of funds getting expensive one may need to look beyond energy, labour and material costs and examine debts and interest cover.
MCR has no debts so it can sit tight for a while. Whereas WSA according to COMMSEC, has debt/equity of 228% and interest cover of -26.9. Not sure what sort of loan covenant it has. This area is likely to make or break a company when PON tanks further.
Food for thought only.
- Forums
- ASX - By Stock
- can anyone explain share price drop
When margins are squeezed and cost of funds getting expensive...
-
- There are more pages in this discussion • 31 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)