I agree with you dmcd, Oliver's just keeps releasing more Doom and Gloom as you say.
I only analysis and repeat their own statements like the loss's they are releasing and asking simple questions like why can't they release the 2019 budget figures that they have already supplied to their Bank for their ongoing loan facilities. Surely it is only fair that their shareholders should know these budgets and forecasts too. This casts doubt on the Directors own confidence in the company, I think.
We both know why, as you point out more doom and gloom to come?
I see that Oliver;s say that the net asset backing per share is 7 cents based on the current book value of the company. That is if it could be sold for the asset value in the accounts. Usually this figure is hard to achieve for any company if the asset is sold. For example if you pay say 300k for a fit out of a shop (that is any shop) you do not expect to get the 300k back do you. So Oliver's valuations may be hard to achieve if for example it was sold, not that I suggest it is going to be sold. I merely point out that book values cannot necessarily be relied upon as a true market value, in other words what someone would actually pay for it.
So at 7 cents is it over valued? I think it is and why someone would pay 12.5 cents per share when it is not making a profit bewilders me.
Didn't Oliver's have a press release saying they were on target to pay a 7 cent dividend earlier this year? By Jason Gunn and the Chairman? Approximately 225 million shares @ 7 cents is $15.750 million dollars. Now can you see why I am so skeptical of this company. They just don't seem to get it, how can you be that far out with your forecasts?
The sad thing is that many people are buying this penny dreadful stock as it looks cheap as it is in the cents.
As I have said before fingers are going to be burnt here.
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