destined for further share price decline, page-77

bozzo cut your losses mate and i mean it. did you really buy 500k at 17cents. poor bugger if you did i know the feeling well. tax loss selling will drive this lower this month and they are burning 20-30 million a quarter in cash with about 58 mil in cash in the bank as at 31 march 2014. they might only have 30 mil by end of this quarter , who knows but its going to be lower. debt level is $360 million AUS. with gold at 1250 how will they manage this load. paying 8.25% on this debt which is about $30 million a year. in all honesty i cant find a more heavily indebted company on the asx compared to market cap. at 14 cents sbm's market cap is $67 million. how will they raise capital with a market cap this low with gold price potentially slumping to new lows. june is never a great month for gold and it is normally its weakest month. they would have to raise at least $50 million dollars if they did a placement you would think(6 months cashflow) and how much dilution would be for shareholders. sbm has been increasing debt this year while cash flow has been diminishing. in all honesty what is the catalyst for this stock to start heading north. i cant find one at the moment. good luck if you hold but please dont bury your head in the sand hoping things will reverse. my 20 years experience trading says that never works when the stock is in trouble. get out before while you still have $70k capital bozzo it could go to zero.

frosty