Josun88 this is how i look at it.Market cap $1.3 BillionDebt...

Josun88 this is how i look at it.

Market cap $1.3 Billion

Debt $2.3 billion (debt increased 18% in the last 6 months)

Cash on hand $224 million

Dividend cut by 50%

NPAT down 41% to $78 million from $133 million

Loss for half year of $74 million due to write downs.

So Increase in debt, decrease in profits and an over all loss for the half doesnt look good for the future.

The company states that debt will increase which will be seen in the next half yearly report.

The amount of debt is nearly twice its market cap and debt will continue to increase, profits drop nearly 50% so how do they expected to pay back all that debt?

Cash in bank is very slim and id say some sort of cap raising will be needed later this year.

In my opinion no matter how you look at it those figures do not look goo.

Debt is increasing more then what profits the company is making.

Market cap of $1.3 billion plus debt of $2.3 billion = $3.6 billion

Way over priced in my opinion for a company that made a loss last half and even if you take away that right down prfoits were down nearly 50% to $78 million for the half which is no where near enough to justify a combined market cap of $3.6 billion.

Without the debt id say its cheap but $2.3 billion in debt and increasing is going to kill this business.