After my
previous post more than a year ago, let's revisit Green Packet's liquidity position.
For the entire year of 2011, Green Packet had a negative free cash flow of RM108 million. As you can see above, its current working capital ratio is 68%. Besides that, Green Packet via its subsidiary Packet One has more than RM270 million of convertible preference shares. These convertible preference shares are supposed to be convertible into shares when Green Packet lists its Packet One subsidiary. How viable is the listing? I am far from convinced. Will SK Telekom, be the saviour again by pumping additional funds into the company by picking up convertible preference shares again?
Again I reiterate, Green Packet is taking the wrong fight - especially so when LTE comes into play. (They do not have the diferentiator advantage anymore, as all are the real 4G) I wonder how long more it can last.
Related article:
How deep is Green Packet's problem?
2 comments:
Let's give them by year-end, or sooner!
It is always tough when the market is already matured.
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