I contacted management and the suggestion was to wait until after the results announcement and then set up a meeting.
I think there is merit in asking the questions. On a $5.3m profit and considering they have not I presume settled the full tax (maybe they dont have any- must check)the $7.4m cash flow negative is concerning. The build -up of questionable stock is also concerning. I have long held the view that if stock cannot be sold within a 12 month period it must be distressed stock. Its more like a mining resource that you have chosen to spend money of accessing too early.
I will therefore await the results and then go and see them.
Not sure I could post that meeting here so may well put a private email so that you can send me an email and I will send you my view.
As to banks - I am not sure they have much wiggle room. The business is profitable and significant progress has been made even in cash flow terms. However no doubt 2011 they will have to be cash flow positive IMO or raise capital so that they are.
only hold small position to be on register.
PSH Price at posting:
37.0¢ Sentiment: None Disclosure: Held
