Interest rates will most likely be low for a long time, if you want to invest in a bank account you should just put your money in the bank instead.
The company is hoarding excess cash with absolutely no idea how to use it, it is crazy. The low share price gives them plenty of opportunity to substantially increase EPS with the excess cash at no risk.
Just to do a back of the envelope calculation. If they used $6 mil of cash to repurchase shares at an average price $0.11, they would increase EPS by 27% risk free. Instead they will either sit on it a low interest rates for the next several years or pay a cheap price for a toad of a company in the hope that they will kiss it and it will turn in to a prince... too bad that only works in fairy tales.
Interest rates will most likely be low for a long time, if you...
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Last
3.5¢ |
Change
0.000(0.00%) |
Mkt cap ! $20.94M | |||
| Open | High | Low | Value | Volume |
| 3.5¢ | 3.5¢ | 3.5¢ | $65.27K | 1.865M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 420904 | 3.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 3.8¢ | 2502503 | 1 |
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| Last trade - 12.19pm 27/06/2024 (20 minute delay) ? |
| PHX (ASX) Chart |