penny dreadfuls under 5cent worth a punt..?, page-41

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    CXH - Compass hotel group

    1.8c

    NTA: 20c
    Cash: 3 million
    Market cap: 2 million
    Revenue: 60-80 million per year
    Shares on issue: 123 million
    Debt: 92 million

    Unlike other stocks in this thread, CXH actually has strong cash in-flows. Like other Reits, it has been hammered down because it has breached lending covenants. However the lender has stated they wont call in the loan. Definitely a risky play, but if they survive there is significant upside.

    I suspect the current shareprice reflects an institutional investor trying to get out at any price. Nice entry position at all time lows.

    Worth a punt but do your own research.
 
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