The share price is now clearly pricing in an offering that would massively dilute ownership at this valuation level. If it doesn’t happen and we reach at least some kind of healthy level of business profitability, then a 10x increase would not be impossible in a couple of years, given how low the share price has been pushed. But if the offering comes before that, it will be a bad situation for many owners, as a perhaps EUR 10 million offering needed at the current share price level would dilute ownership by at least 1:2 without participation.
I would personally like to see some sign of life from Hartwall as a major owner, what they think about how Duell’s share price could be corrected. At the moment, the company is adrift, even though the acting CEO seems quite competent.
I would also like to see more substance and the opening of different operating areas. Now, only France’s problems are being highlighted, but how are things going in the UK with TransAm and other operating areas? France’s problems alone cannot be the reason for such a massive drop in profitability.
And an estimate is also needed on how much debt can be reduced by optimizing inventories and inventory levels over the next 6 months?