- AUT pumps oil & Gas - O&G prices are very sensitive to marginal demand/supply - A melt down of Eurozone is thought to have likely severe economic implications (to the Eurozone) - As the Eurozone trades with the rest of the world, that could have a knock on effect - If it does, and there is a general downturn, demand for O&G will reduce, as will prices, as will AUT's income.
Fortunately, the BoD, being quite acute on these matters, negotiated a debt facility in excess of what they thought necessary so that they have room to absorb the consequences of diminished income on cash available to self-fund MRO's ever accelerating drilling programme.
If you have been following the markets, you might have noticed that they are sensitive to the progress of the negotiations to write down Greek sovereign debt (at the moment - the market will find something else to worry about once that is resolved).
Whether or not the markets SHOULD be sensitive to such things is besides the point. They have decided that they will be.
AUT Price at posting:
$3.15 Sentiment: Hold Disclosure: Held
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