Short the stock and then destroy the company, ASIC might have a view that.
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So here's why the sp is getting slammed and finding little support :
EBITDA
H2 2022 $32.7m
H2 2023 $25.3m (based on trading update of $65m for full year)
Definitely no longer a growth stock and only the second earnings downgrade.
The smart ones got out when Simon Whimp waved the BIG RED FLAG with his uncouth and unhinged Nadia Lim comments.
Why do DGL even report EBITDA anyway. Depreciation is such an important expense consideration for DGL. All the trucks and equipment in the factories… also the Interest is material with the way rates are going up. These are REAL expenses!!
All this cash conversion crap as well. Why don’t they report profit and FCF.
These are red flags?
Market cap not that long ago over A$1 billion
Now only about $250m
Suppose never really was a billion dollar company
Be interesting to know how much leverage (borrowings) Simon has against his DGL shares. Very painful if he had to keep topping up and at a point in time, will have to sell assets to raise cash to top up?
He must be wishing he kept his powder dry rather than bought shares on the way down :
https://www.fool.com.au/2022/09/08/d...lls-his-boots/
Looks like a few followed his lead and must now be wondering what possessed them?
There was bit in the NBR a few weeks ago -
Still, NBR keeps a close eye on DGL and an ASX notice about an amendment to its securities trading policy jumped out. Basically, the change lets certain people at the company enter margin loan arrangements with it, on approval by the board. It’s already approved one, being a whopping $18 million to Henry, secured against his shareholding in DGL. The purpose? To refinance part of his property loans more efficiently. “Given the current challenging market conditions, including the rise in interest rates, the Board deems it reasonable to provide Individuals with the option to utilise margin loan arrangements,” the ASX notice said
We know how margin loans can be so disastrous to borrowers when share prices drop precipitously - usually inducing a vicious downward spiral.
Then there are all the shares in escrow which are probably finding their way into the market, causing even more pressure.
Gee more SP pain today. Scary actually. People want out and at any price it seems