RADs and confidence, page-6

Yes, what you have posted illustrates my entire point.

They have operating cash flows, but not nearly enough to do all the things they want/need to do.

They are acutely and entirely dependent on RADs for funding.
Without RADs they can't grow.
And if they can't grow they can't rake in higher priced RADs
And if they can't get higher RADs they can't grow
etc.
etc.

And the minute net RADs turn slightly negative, then they've got big problems.


Back to your points:

What happens when they don't have 70 units coming online one day and therefore no fresh RADs coming in at ever higher prices?

What happens if the industry drops too many units on the ground relative to demand for those units?

What happens when the market for RADs fails to clear one day?

Someone else put it quite neatly on the EHE threads:

http://hotcopper.com.au/threads/ehe.../threads/ehe-its-a-buy.2880375/#post-18945327