The $1.073B is a net asset deficiency, its not debt!
What that means is if they sold everything for what they think it is worth on the books they are $1B short!
Is it a buy or sell???
Look that really is a hard one...
Fundamentals on this stock are really poor because of the massive debt.
That's why no super fund will ever touch this baby in this condition.
Vodafone has some good prospects in Australia and would be rated way higher if it wasn't for the horrible balance sheet.
The debt is the noose around the neck of this company, and the parent company will keep on sucking out profit overseas as an interest repayment...
Its a sell for me, but only because I don't think it can go anywhere and my money could be better kept elsewhere at lower risk...
The positive side of HTA is that it is very tightly held and thinly traded.
If positive news were to be released you could see many punters hop on, or day traders. They could push up the price considerably without understanding the problems with the balance sheet.
So its a tough one... Could it go to 30c on day trading activity and speculation. I believe with the right news it could.
Could shares be worthless if the company was sold? I believe that could happen too.
Or most likely you will be offered shares in the company that is purchasing HTA
This thing really could go anywhere... up down or disappear.
There are far safer investments, elsewhere. Vodafone and Hutch will walk away with the bulk of any proceeds purely as debt repayments, and shareholder will potentially get nothing.. that's a real risk.
HTA Price at posting:
7.8¢ Sentiment: None Disclosure: Not Held
