Agreed. I guess we can take heart in the fact that property values have hit the bottom of the valuation cycle. We know that CXH paid too much for their portfolio, however its priced in a current levels.
Despite the debt and high gearing, St George appear to be supportive of the business so that is a positive.
The one thing that makes me a little nervous is they have had to borrow additional funds to meet interest repayments. That is a little worrying. Management need to reign in costs to take advantage of the strong cashflow. If we can survive the current period I think we will be well placed for future QTR's as property values increase and people begin to loosen their purse strings...
My opinions only, do your own research.
CXH Price at posting:
2.0¢ Sentiment: None Disclosure: Held
