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Not to mention LGCs will keep reducing till 2020. Can IFN...

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leasx

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116

22/12/18

11:15

Post #: 36943348
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Originally posted by hfrench: ↑

Apart from LGCs, there's Infigen's $500m+ in net debt. Its ability to pay the interest has improved in recent years but is still not great, and in an acquisition this is $500m on top of the equity that a potential buyer has to find. I'm also unsure as to how much of IFN's debt is fixed because the media releases aren't clear. More risk again in the form of potential rate rises if it's floating.

It's this combination of a highly-geared balance sheet and "sovereign risk" (reliance on the LGC market) that make me think IFN is not unduly cheap at the moment. It may become so in the event that its share price gets smashed due to a credit contraction or general market jitters.

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Not to mention LGCs will keep reducing till 2020. Can IFN survive in the post LGC world?

Also I don't get who in their right mind thinks the execs should be paid what they are. One of my stocks that has boomed (Nearmap) has a CEO on 1/5 of the wage that Miles is on at Infigen. It's literally insane given how little growth Infigen has. A CEO getting paid $5 million for the wind blowing is hilarious when the debt is so high and they haven't turned the ship around.

IFN Price at posting: 43.0¢ Sentiment: Hold Disclosure: Not Held
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