Receivables are $9m and Inventories are $27m. If inventories were complete rubbish they would have already written them down somewhat? Am I missing something?
On top of that there is a further $33m in cash.
I mean it's a reasonable balance sheet, revenue is still coming in decently, all they really need to do is tighten the belt and focus on selling more profitable items. I know I'm making it sound easy, but at $50m market cap, it's worth a punt. There's risk involved, but this result (which a lot of us agree is better than expected) is an indication that things are looking up.
SRF Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held