NLG are way over geared, but they operate in an industry that has been enormously profitable for the smart operators, and may be so in the future (if they adapt and use their unique licenses well).
If we are talking recapitalization, the $15m market cap will dilute your holdings in an instant.
If they are to sell some assets then it reduces the upside.
Only other option is to trade out, which is a VERY long term story.
Yes, well run pubs are good money, and it seems there is a good captain. But you you can only do so much with a leaky bucket.
Shareholders - ask them what they are doing long term to diversify their income base and mitigate risk. They have a tenuous hold on some of the biggest potential hospitality assets in Australia.
The business is improving, but its the leaps in potential that need to be unlocked.
FYI I hold HLG - destiny tied to NLG and WES
NLG Price at posting:
3.0¢ Sentiment: None Disclosure: Not Held
