Hey RB, you still holding this mutt.:eek2:
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This stock (and WYN) make PEB look like a star!
How long will $2m cash last? A few days with all the high pay staff Orion have?
Excerpt : "Is it a timing only issue, or have you lost customers?
The lower revenue is not due to the loss of customers. A number of the opportunites are still in progress and if finalised will contribute to FY2018."
Very telling commentary from OHE. Sounding like OHE has not been able to close new deals which is just as worrying as losing existing customers.
Excerpt from interim report in Nov 2016 : "Cash balances at 30 September stand at $24m. The net cash outflow for the period of $33m reflects the Operating Loss of $17m and an abnormally large movement in working capital items. The outlook for continuing revenue growth and improved EBIT is such that we believe that the company has sufficient cash and facilities to execute its strategy until profit is generated, which we expect to occur in FY2018."
**** ******
Now OHE states that its cash position will be between $2m to $6m - how the hell can an IT company not know at year end what its cash position is ???? :eek2:
And forget about getting through to profitability with the $24m it had as at 30 Sep 2016 - it now needs a capital injection to get through to profitability in FY18.
Cash burn was between $18m to $22m (or $3m to $3.7m per month) in second half which means that the $2m to $6m left will be just about enough for another 3 weeks to 2 months! Forget about supportive ASB - banks are quick to pull funding facilities when you actually need to draw down on their facility!
Why provide guidance if they can't get it right? This is turning into a joke! Will investors ever take them seriously? Existing shareholders are going to be diluted by capital raising.
Discl: never held
Posted 13 December 2016 when SP was $2.00.
Many posts before that in which I was overtly critical of the promotors and management for having the gall to being this to the market without any financial projections, (shows disrespect to good financial disciplines and conventional processes in my opinion).
http://www.nzherald.co.nz/business/n...ectid=11349437
Disc: Fur fully intact and well groomed as I didn't go anywhere near this one at any stage.
In my opinion, there's PLENTY more potential for hapless shareholders to get very badly burned with this mutt but best wishes and good luck to all holders, as I feel you'll need it.