re: would be an awesome short of the year..not
Banks and creditors will take equity for their debt if there is no other way of recovering their loans or debts. It should be noted that this is the second time this operation has burnt shareholders and lenders.
The reason is evident - the technology is excellent but the company capitalises the R&D and by doing this is actually selling its goods below the true cash cost. Orders can be obtained by offering low prices but the company is losing cash flow. When the funding stops so does the company. It was the same story with the dotcom implosion. Always check the cash flow of tech companies as well as the accounting profit.
As for the future ... well it is Christmas and miracles can happen...can't they?
IHG Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
