Watso - Thats my thought - well sort of.
Assume they were viable at the old lower rates, but the new higher rates would affect earnings.
Earnings would not have to go negative to be a problem. If earnings are hit sufficiently to not be able to compete with the fund across the street - say a percent or so - then they would have trouble. Currently their earnings are about 40c a share for a 6 month period. Make it about 10% PA based on the old 8.00 share price - if that drops to 8% when MLC across the road are offering 9%......
The question is can it be salvaged - can they restructure to retain a competitive rate.
What would happen if they sold everything in the US and went back to their pre US position?
No one knows - I certainly don't and the lack of communication from the company about the true nature of the problem does not help.
They should be giving daily updates - a bit like a spec oiler with daily or weekly drilling reports
Watso - Thats my thought - well sort of.Assume they were viable...
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