Spindex Industries

[BlueKelah]

I noticed Spindex took a big drop today and ended below $1 @ 96c.(on small volume)

Perhaps the US economy is cooling(secondary to Chinese slowdown and tightening credit affecting car loans). Automotive is one of the first sectors to indicate cool down in economy.  Should this continue its difficult days for Spindex again.

From their recent half yearly report:
[For the six months ended 31 December 2017, the Group generated a positive cash inflow of $7.6
million from operations. In addition to dividend payment of $3.5 million and repayment of term
loans amounting to $3.2 million, cash was also channeled to purchase new machines to replace
and improve manufacturing efficiency. In view of these outflows, the Group recorded a decrease
in cash and cash equivalents to $28.2 million as at 31 December 2017.
On the balance sheet, the increase in trade receivables and higher inventory were due to
slowdown in collection and lower sales toward the end of second quarter. Although fixed deposits,
cash and cash equivalents were lower at $28.2 million, there was no debt. The Group’s balance
sheet remained very healthy as at 31 December 2017.]

[The general global economy continues to be uncertain and challenges remain. Continuous pricing
pressure and volatility in macroeconomic factors such as adverse foreign exchange rates will
affect business profitability. The Group is experiencing a slowdown in the automotive sector that it
serves. The Group maintains a cautious outlook for the rest of FY2018.]

Waiting for 30c again, next round coming....