PEB - Pacific Edge Ltd

[couta1]

Thought you werent going through it all again?

Some weeds are hard to keep at bay aye

[Schrodinger]

How's that 'research' coming along?

brb..copy pasting from PEB reports...

[Balance]

I'm happy enough Balance, considering where PEB are in the rollout of their business model.

Based on the HY result (and where they are - in these early stages of sales)... and compared with the last couple of years .... liquidity ratio's are still quite healthy, profitability ratio's (-ve) are declining encouragingly, their efficiency ratio's are looking impressive and of course - their leverage ratio's are very healthy. Importantly, cash is being used wisely indeed!

Let's see where they are at the FY15 release before panicking. Before then and I think the mud is being thrown prematurely. Again, given where they are in the time line - I'm not concerned about the level of their debtors. Certainly no reason to panic and start to push the factoring button!

It's no secret I'm well involved with PEB ... and see no current reason not to remain that way!

Emotive words, Dentie - 'mud', 'panic' - totally inappropriate imo when investing in shares.

The following numbers give an insight into PEB's operations :

$'000 HY15 FY14 HY14
Sales 1011 523 100
Debtors (TR) 1404 574 197

Sales are essentially on very long extended credit terms. The more sales PEB generates (assumption here of more sales), the more working capital PEB is going to require.

Meanwhile, cash burn is running at between $1m to $1.5m a month which means that by June this year, PEB is likely to be down to its last $5m cash or less.

Cash/capital raising to be announced in conjunction with its FY15 results announcement must be a distinct possibility.

[couta1]

Came in to see if anything interesting was happening but its still the same "blah blah blah" from last year.

*yawn*

Your got to have patience like you do with Sum aye, go and hibernate for a bit longer

[Dentie]

Emotive words, Dentie - 'mud', 'panic' - totally inappropriate imo when investing in shares.

The following numbers give an insight into PEB's operations :

$'000 HY15 FY14 HY14
Sales 1011 523 100
Debtors (TR) 1404 574 197

Sales are essentially on very long extended credit terms. The more sales PEB generates (assumption here of more sales), the more working capital PEB is going to require.

Meanwhile, cash burn is running at between $1m to $1.5m a month which means that by June this year, PEB is likely to be down to its last $5m cash or less.

Cash/capital raising to be announced in conjunction with its FY15 results announcement must be a distinct possibility.

'Mud' and 'panic' ... just a bit of phraseology to enable a bit of relevant perspective ... no emotion here Balance! Perhaps 'concern' and 'rocketing worry' would suit?

Anyway, as I said, I'll wait for FY15 to be released before I assess what the next step might be. I agree about the credit and working capital but given they are just in the early stages of winding their operation up and getting their processes and contracts in place etc, it is to be expected. As time moves on though, I am sure CS, DD and their advisors will have these bases covered.

Don't forget they have funded everything mainly on equity to date - so having no debt I think is a credit (no pun intended) to them. I don't believe it is good policy to rely entirely on equity so as they crank things up, maybe they will look at some debt "just to balance the balance sheet" (again, no pun intended!!).

The debt may only happen if their trading cash is insufficient to cover operations. I will not be surprised though if they start making surplus cash not too far down the track.

That all said, if another CR is preferred - I'll listen! to their reasoning.

[BFG]

Emotive words, Dentie - 'mud', 'panic' - totally inappropriate imo when investing in shares.

The following numbers give an insight into PEB's operations :

$'000 HY15 FY14 HY14
Sales 1011 523 100
Debtors (TR) 1404 574 197

Sales are essentially on very long extended credit terms. The more sales PEB generates (assumption here of more sales), the more working capital PEB is going to require.

Meanwhile, cash burn is running at between $1m to $1.5m a month which means that by June this year, PEB is likely to be down to its last $5m cash or less.

Cash/capital raising to be announced in conjunction with its FY15 results announcement must be a distinct possibility.

*Wonders why solid information like this is seen as yawn material when promises were made of no more dilution and the last cap raise taking the company into profitability. Goung to be a mighty thin line their skating it is still rings true, at best. At worst...*

[Dentie]

Came in to see if anything interesting was happening but its still the same "blah blah blah" from last year.

*yawn*

Sorry to wake you NG.

[psychic]

*Wonders why solid information like this is seen as yawn material when promises were made of no more dilution and the last cap raise taking the company into profitability. Goung to be a mighty thin line their skating it is still rings true, at best. At worst...*

Largely I guess because it was kicked around when the info became available, and covering the same ground again is, well .. yawn.

[BFG]

Largely I guess because it was kicked around when the info became available, and covering the same ground again is, well .. yawn.

Thanks for that.

Not for the reply, but my count on head-in-sand individuals on this forum.

A good indicator, just like the post/view count indicator

[Xerof]

Gee moosie, you're easily swayed. Last week you were about to buy PEB. I think you are a hare, a hound, but definitely not a moose