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33.0¢ mma offshore limited

Saying I wouldn't short is not the same as saying I would buy. I...

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croasian

2,211 Posts.

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22/06/16

08:36

Post #: 18089589
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Originally posted by croasian ↑

I had a second look at the balance sheet, 400m of debt is concerning. From this announcement are we looking at 7m of EBITDA in the second half, a large loss and marginal cashflows.
Probably they would announce an impairment and capital raising at the same time.
Shorters are speculators as market sentiment is a fickle thing. Presently the market price is suggesting bankruptcy or very low earnings for the company.
What happens next is unknowable, they could pull a rabbit out of the hat.
Most likely shorters will do ok but getting against a company that is so cheap and might survive is not smart. Especially when there are so many much sicker companies in the sector horrendously overvalued where bankruptcy is a site thing.
They may do ok but not realise the risks they are taking.

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Saying I wouldn't short is not the same as saying I would buy. I don't like the risk reward situation here.

MRM Price at posting: 30.5¢ Sentiment: None Disclosure: Not Held
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