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clock Created with Sketch. 16/06/16
06:53
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Originally posted by yifuj
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Exchange rate wont matter as most costs are denominated in USD. If cash at hand increases 5% in AUD terms then cash burn in AUD terms will also increase 5%. There are plenty of stocks trading at or below cash backing, because there is no way for that cash to generate shareholder value by producing profits (i.e business model valued at $0), and so from it seems that 1PG is one of them. Technically, yes, may bounce (but risky and bottoms are always hard to predict), but fundamentally there is no value here unless they can demonstrate a dramatic turnaround. In the long term, fundamentals always trumps technicals and investor sentiment, but it all depends on your investment timeframe and perspective IMO. I personally wont touch this until it falls below cash backing at the 30c level. Unwilling to risk that 30% fall for a short term speculative bounce trade so I will wait on the sidelines. GLTA.
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I think he was simply referring to the fx adjustment in the last quarterly of ($2.2m) being reversed, this was reported in AUD
