LYC 2.81% $6.23 lynas rare earths limited

Debt problems not resolved, page-95

  1. 116 Posts.
    Whether or not Lynas can service its debt should not be a main focus of shareholders for now because the going concern issue has solved in the medium term with the debt restructure. And in fact unless you are a bond investor you should never take debt problem as the first thing to decision sell or buy

    Plus there is a good chance lynas can service debt consider its strong top line growth since 2014. The problem lynas needs to solve is its low capacity utilization and negative gross margin, which results negative cash flow thus cant support its working capital. I would keep close monitor on their progress in 2015, and I would not say investing now at 3.7c is a bad investment decision for someone with high risk appetite, buy for capital gain, with some patience and keen on natural resource sector. But obviously if you only buy for dividend then the whole sector does not suit you now, maybe consider alternatives such as bond, Singapore REITs or merely put money into your offset account? This is not an apple to apple question.

    Share price does speak for itself. But how did ASX300 go since end of July?
    I appreciate different views, but find LTL is amusing by keep posting and repeating same sentences with no value adding. The strategic partner topic is just rubbish.
 
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