NWH 0.65% $3.08 nrw holdings limited

What are the risks and impacts on this business if during the...

  1. 51 Posts.
    What are the risks and impacts on this business if during the bottoming of the mining investment cycle some of their clients have cash flow difficulties / collapse / and otherwise cannot pay NWH? Is their client base "blue chip" enough to allay fears of this risk? Are rising bad debts or a widening payment cycle a legitimate issue for a fairly working capital intensive business like NWH? How do they mitigate it, if so?

    I would chance a guess that net tangible assets are being discounting in the current price because the market believes that low asset utilisation going forward will result in a below market return on assets for quite some time.

    Just thinking out aloud...
    Last edited by Vesupria: 03/10/14
 
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$3.08
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