was listening to mike smith talking about anz on inside business on sunday
he says it is all about
1. being able to pay debts as they fall due
2. and paying the interest on loans
ok lets have a look at the financial statements for the half
ok so the interest required is probably in the vicinity of $20m
ie (2/$10m)
is this achievable?
well the company managed to pay $10m last half and still make a profit of $400,000
management has said that the second half will be better
just looking at the figures for all other companies in this space the sector is definately in downturn
fea was profitable for five or so years until last year
now having to renegotiate covenants with banks
Assuming we are not going to go into a second dip I think there is no reason to think gns cannot pay the interest on their bills
ok paying back the principle as it falls due
at the moment gns has current liabilities of $126m which are due in 4 months time
how then will they pay this?
1. refinance
2. capital raising
the company has 662m shares
if the company were to do 2 for 1 rights issue at say 40c that would cover it
2 for 1@ 40c would net them $132.4m
the company
i
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