Some weeds are hard to keep at bay aye:eek2:
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How's that 'research' coming along?
brb..copy pasting from PEB reports...
Emotive words, Dentie - 'mud', 'panic' - totally inappropriate imo when investing in shares.
The following numbers give an insight into PEB's operations :
$'000 HY15 FY14 HY14
Sales 1011 523 100
Debtors (TR) 1404 574 197
Sales are essentially on very long extended credit terms. The more sales PEB generates (assumption here of more sales), the more working capital PEB is going to require.
Meanwhile, cash burn is running at between $1m to $1.5m a month which means that by June this year, PEB is likely to be down to its last $5m cash or less.
Cash/capital raising to be announced in conjunction with its FY15 results announcement must be a distinct possibility.
'Mud' and 'panic' ... just a bit of phraseology to enable a bit of relevant perspective ... no emotion here Balance! Perhaps 'concern' and 'rocketing worry' would suit?
Anyway, as I said, I'll wait for FY15 to be released before I assess what the next step might be. I agree about the credit and working capital but given they are just in the early stages of winding their operation up and getting their processes and contracts in place etc, it is to be expected. As time moves on though, I am sure CS, DD and their advisors will have these bases covered.
Don't forget they have funded everything mainly on equity to date - so having no debt I think is a credit (no pun intended) to them. I don't believe it is good policy to rely entirely on equity so as they crank things up, maybe they will look at some debt "just to balance the balance sheet" (again, no pun intended!!).
The debt may only happen if their trading cash is insufficient to cover operations. I will not be surprised though if they start making surplus cash not too far down the track.
That all said, if another CR is preferred - I'll listen! to their reasoning.
Gee moosie, you're easily swayed. Last week you were about to buy PEB. I think you are a hare, a hound, but definitely not a moose
Realistically no banks will lend money to PEB until such time as it is profitable and shows sustainable profit and cash flow.
So there's no credit in PEB having no debt - in fact, it will be to PEB's credit if it had been able to obtain debt - huge vote of confidence from the banks!
As i have mentioned, in many years of looking at many many balance sheets, I cannot recall seeing trade receivables higher than sales revenue!
No wonder the results presentation had this memorable line : "Utilisation of $0.6m of cash in 1H15, including funding received from short term deposits"
The $66m of equity shareholders have put in worth $240m on the market
That's a pretty decent return over the years
PEB are doing well
W69, that's what they said about Rakon and Plus SMS, remember - $1 in at IPO was worth $4 at one stage in Rakon, and $1 in Plus SMS was worth $2000 at one stage.
Profits and returns have to be booked before any shareholder can say he/she has done well.
Masfen, Huljich and a few others had been selling so they have done well.