1. Most Discussed
  2. Gainers & Losers
ACL 0.9¢

Doing the numbers

  1. investor450

    783 Posts.

    I expect there will be a couple of weeks of rebalancing as fed-up shareholders get out and new ones who are doing the numbers. It wouldn't surprise me if the SP stays under pressure for a little while, maybe drop lower. In the meantime, I have been running scenarios but am a bit puzzled by their proposed cash burn at the end of 2015. I know ACL has a number of very knowledgeable and loyal (but fed-up) shareholders. I would appreciate comments on their cash burn needs.

    ACL say:
    They then go on to project a 70% cut in burn rate by the end of calendar year 2015. Sounds impressive but that means a burn rate of $2,232,00. That sounds a lot to keep the fonda patents going and collect cheques and pay dividends. They should only need a couple of board members, outsource company secretarial work and have an internal accounting and office support function. I was expecting somewhere under $1 million. Can anyone explain why such a high burn? It is equivalent to 4.8 cents dividend between 2016/2022 so it is significant in doing the numbers.

    Maybe they will keep reducing, I think they need to.

DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top

Thank you for visiting HotCopper

We have detected that you are running ad blocking software.


HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.