I didnt think they were cash strapped. I thought that with the reducing capex requirement this year , the reversing forex mark to market loss that the profits would drive the cash flows needed. I was more worried about the longer range cash-flow needs with the banks wanting a reducing facility into the future.
Its gearing has been for me a problem but I think it goes deeper than that. You need to develop a plan for the future and properly target where you want to be later.
I had hoped they would raise capital but I think that for the smaller companies that boat may have sailed.
I have had to find money for 8 investments in rights and spp's and placements so in effect I am having a much harder look these days at picking and choosing which I will follow. Some of the smaller companies seem to be taking strain in getting the SP to hold up under these circumstances as shareholders want to liquidate shares to take up rights or SPP at a lower price. Soon this wave may stall.
Maybe PSH have left it a bit late.
Only hold a very small parcel to keep an eye on it.
PSH Price at posting:
97.4¢ Sentiment: None Disclosure: Held
