Easy buy16 Jul 2015 16:00
Drax issued guidance that budget cut will affect EBITDA 30m this year and 60mn next year and then falling to zero anyway by by 2020 - even without the cut from the budget it was going to disappear.
From the 2014 reports
only 99m in debts
"Property, plant and equipment – The net book value of the Group’s property, plant and equipment was £1.7 billion at 31 December 2014"
So MCAP cust over 1bn and is below Book value - how often do you see that? That is always a flag to buy.
Does it make a profit?
400m Gross profits on 2.8bn turnover and 229EBITDA
Why chart is so bad then? Continuing squeeze on profits and continutaion of squeeze is predicted. recovery not fully expect until next year
I think SP drop is overdone. dividends will be paid otherwise SP will fall off a cliff and now it is approaching more than 4%
This is ripe for a takeover and its bite sized
Its a BUY