That maybe so but long term wise isn’t ideal. Their first half cashflow was appalling and disclosure around related party transactions is dubious at best. Are they at arms length? No idea as disclosure is minimalistic.
Large increase in working capital, large increase in carrying amount of stock, whether it can be sold or a write down occurs if they become obsolete is a potential risk.
Too many risks and unknowns, potentially looks cheap but the uncertainty, lack of disclosure and risks make this not one for the faint of heart.
CLT Price at posting:
5.9¢ Sentiment: Hold Disclosure: Not Held
