Heading back towards 57c again?
Market is sensing a heavily discounted rights issue?
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Always a bit of worry when this is written to sound good -
Following strong invoicing towards the end of the financial year the accounts receivable balance was at an all-time high for year ending 31 March 2018 which is expected to be collected during the first half of FY 2019.
The audit opinion refers the reader to Note 1 of the accounts. Note 1 of the accounts regards the entity as a going concern.
"These conditions along with other matters as described in Note 1 indicate the existence of a material uncertainty that may cast significant doubt about the Group’s ability to continue as a going concern."
I liked the Orion model - and have the investment losses to show for it. Still interested in how they progress or not. For all the cost-cutting, I am astounded that they have around 30 separate offices around the globe (in grand metropolises such as Santa Monica, Palma, Madrid, St John, Edmonton, Glasgow, Canberra and Belfast - and trumpet it in today's investor presentation - as it it was a triumph! I would have thought it was a very sensible alternative to have offices in London, West Coast, East Coast, Asia, Australia and NZ. SIX in total. That covers pretty much every time zone. Sales can travel and technical / project people can mostly work in the regional office. Maybe there is a genuine, realistic requirement for so many offices but I've seldom seen it in a business with a few hundred million in revenue. Ugh.
Looks like the share price is slowly creeping upwards, some renewed confidence in the company. One thing that the latest financials haven't taken into account is that they reduced their staff count by 18% recently, which on a wage bill of $145million is about $26 million savings there alone, so I think there is a lot of confidence they can reach break-even.
I'm actually astounded to see Rhaspody business has a gross profit of $27 and its the Hospital business that is losing the majority of the funds.
For me the break down in value is that Rhapsody is worth $200 million as a business itself, while the hospital unit in its current state is possibly worth 100 million.
Assuming they can get to break-even this is a $300 million plus business. It has its risk, but the reward seems to outweigh the risk on this one.
From todays NZ Herald:
https://www.nzherald.co.nz/business/...ectid=12079616
Sp rally a bit today due to the annual report or the herald report?
The most valuable part of Orion is their customer base, not their systems as they are not close to best in class.
[ To name one competitor ] Datacom are doing it bigger and better, they are showing substantial growth where Orion are losing customers.
With profits out of sight in the short term, everyone knows more cap raises are coming... if I was looking to buyout OHE I would watch them bleed out a while longer.