No-one likes debt but no-one wants their share holding diluted either. Without the CR a couple of years ago Moy would have defaulted on their bank loans and gone into liquidation. I was a shareholder then and Moy wouldn’t have survived much longer. But the company is in a whole new place now and borrowing moderately to expand its capacity and cashflow I believe is a sensible business decision. Based on the potential of Moy’s holdings and the plant upgrade if I thought for one second that they were going to struggle to meet moderate financial commitments then I would sell my shares tomorrow.
MOY Price at posting:
17.0¢ Sentiment: Hold Disclosure: Held
