Charts are good for traders and they come in handy in periods of lull while waiting between news
However, in this case, it is not a period of lull while waiting for exciting news
This is a company that appears to be operating at a loss, and using shareholders money to raise capital to keep the lights on time after time. The commodity price is in the dunny, so it seems. Cheaper synthetic graphite I am told has destroyed the natural graphite market while at the same time no analysts have any positive outlook for this to change anytime soon. Happy to be proven wrong.
Unless there is some way, some how, this company can become profitable, then running at a loss with continuous capital raising to pay the salaries of the board and loans is not a great outlook long term. The share price may continue to trend lower unless their operations become viable
The recent capital raise represented a whopping 21.4% discount to the share price. You must ask why.
The company appears to be riddled with loans they cannot organically cover with proceeds of business. The equity raising as stated by the company, was mainly for operating costs and costs associated with their multiple loan facilities. How long can they continue to run the show like this? AustralianSuper is the only reason they are not in the gutter
DYOR IMO
SYR Price at posting:
47.5¢ Sentiment: Sell Disclosure: Not Held
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