MFS might be able to service their debt, however the market on Friday was as much a response to a huge loss of one thing: TRUST.
NO COMPANY should be telling the market that all is good, and there is only a smallish amount of debt that needs repaying (and within their ability) and then go to the market to raise what at the time was around a third of their market cap and almost 4 times the debt to be repaid.
This would be similar (in scale) to a major bank saying "no issues here with sub-prime. All good". Then putting their hand out for a $10 billion rights issue without a totally coherent reason except something like "this will give us more flexibility".
It is simply TRUST. If earlier announcements re debt, ability to repay, EBITDA / NPAT projections ... are all correct then the company will go on - and should be worth multiples of the current SP. However it will take a LONG time for trust to be rebuilt, and just as long for MFS to get back over $4 where it was only a couple of weeks ago.
MJS
- Forums
- ASX - By Stock
- MFS
- ceo to make ann to asx monday.
MFS
mfs limited
ceo to make ann to asx monday., page-13
-
- There are more pages in this discussion • 9 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add MFS (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
CC9
CHARIOT CORPORATION LTD
MD - Shanthar Pathmanathan, Geologist - David Trabert
MD - Shanthar Pathmanathan
Geologist - David Trabert
SPONSORED BY The Market Online