This is your post. 1. Does OMH's liquid assets cover its...

This is your post.

1. Does OMH's liquid assets cover its short-term commitments? The Answer is a clear NO.

As at 31 Dec 2018 OMH held A$79m in cash and a POSITIVE working capital balance of A$196m. A$72m of the debt is due in CY19 and even after accounting for depreciation of the A$ can either be repaid from cash and operating cash flow or restructured. So this first assertion is wrong.

2. Is OMH's debt at an acceptable level? Answer is a clear NO. Debt-to-equity exceeds 100%.

You then quote Debt-to-equity as a measure of why OMH's debt is not at an acceptable level. Whereas if you have had any experience whatsoever in capital markets and project finance you'd know the actual key covenant is Net Debt/EBITDA and cash interest coverage. OMH's forward ND/EBITDA is in the order of 3x. This is neither excessive nor onerous. If the company wanted to restructure its debt or refinance it they could do it tomorrow. Ask any banker. So this second assertion is wrong.

3. The profit attributable to owners for 2019 is most likely going to be less than A$100m compared to A$161.8m.

First of all let's see your calculations of how you get your NPAT forecast. Secondly do you think OMH's management and board care how much NPAT accounting earnings the business will generate? NPAT doesn't pay dividends or pay off debt. Cash flow does. If you think the entire business generates less than A$100m of NPAT then what is the true cash flow of the business after you add back non-cash tax, financing, and depreciation charges? I genuinely hope for your sake that you find stock to close out any short positions you may or may not have.

Do you have any other reasons for your "strong sell" assertion post outside of an automatically generated speedometer graphic based on technical indicators of an illiquid stock held predominantly by the management team and insiders who are currently in a blackout period and can't buy?