No way they can survive without a capital raising. Just look at their likely cash flows this half and their existing balance sheet. Analysts and Gladys have done a good job of talking the stock up on re-open for retail investors who happily buy in the midst of Australia's biggest lockdown at $5.40 but would only take up $71.7 million from a share-purchase plan (SPP) intended to raise as much as A$500 million at $3.18 in 2020.
Retail investors sure are funny creatures. Any look at the European and US experience will show investors the re-open trade and rhetoric from the Government are both fantasies. UBS analyst going on today about how they will beat pre-COVID sales (whilst UBS no doubt offloads position) in 2022/3. Absolute fantasy.
Suggest people start looking at post COVID experience in Europe and US and COVID Mu variant which is ripping through Colombia and Ecuador with strong suggestion that they are resistant to vaccines. Airline travel will not return to normal levels, let alone beat pre-COVID for years.
QAN Price at posting:
$5.39 Sentiment: Sell Disclosure: Not Held
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