I did some "analysis" on AHY a few months back and conclusion was it's gonna go broke soon. That was at price level of $1.60 and before the dec. annual report.
I did scanned through that report and presentation and saw further deterioration except for two things. One was it managed to extend it debt, so it might not go broke on time - around Sept, from memory - but it certainly does not mean business is any better.
Two was the improvement, or not as bad, in EPS and per share ratios. This was just simply due to the buybacks and cancellation of shares and nothing more.
Who knows how the share price will play out, but as a business, this is not the kind you'd go out and borrow money to buyback shares on. Definitely not when business condition is deteriorating.
So in my opinion, this is one investors ought to take a real close look before jumping in. Don't assume that since it's selling toilet paper and tissue it cannot lose. It's because it sells toilet paper and tissue that it can lose. I can't imagine anyone but a very well to do person would care what kind of toilet paper they use... tampon and continence maybe... But for the vast majority, it's something you wipe with. Particularly so when house prices are at the millionaire level when most Aussies aren't exactly millionaires.
AHY Price at posting:
$1.60 Sentiment: Sell Disclosure: Not Held
