Ann: DGX Secures New Midland Property for $25M De, page-4

re: Ann: DGX Secures New Midland Property for... I'm with you vifrioni,

They obviously have cashflow issues. I am interested to know how exactly they manage their cashflow and how the payments come in for their various projects. They had 15 mill cash in previously (after the capital raising), which theoretically shoud give them a good buffer for upfront costs for their projects.

I am personally reassured by a couple of things:
1) there is limited downside risk at the moment with NTA of approx 20c/share
2) they seem to be delivering on their projects- if they had serious cashflow issues- I think this would not be achievable. Obviously there are other (in some cases very good developers- eg Becton) developers who have folded/struggled due to poor financial management but still manage to develop high-quality projects.

If they are using their capital wisely, I am not particularly fussed about the buyback if the equity is being used wisely(ie if they are investing in high-return projects with their cash in hand, rather than cancelling shares). I think buyback is a good option when there is significant free cash without a more enticing way of utilising it. If the report is good, I will be topping up, but need more information to fine-tune my risk. If last year is any guide It should come mid-February...