Ashstead Group will soon climb back

ainsoph,

You were the one that was banging on about how oversold this share was and how bullish the brokers note was that you personally received.
a couple of days later you then sold your holding- I merely wondered what had prompted your change of heart.
My level of incompetence is that I'm wary of shares with balance sheets as bleak as Ashteads.
The gearing is over 400%, and the level of equity at 194 mill isn't far in excess of the the level of intangible assets at 161 milion......and in my book intangibles often hold the same real value as fresh air.
The crux to me is this- is there sufficient profit generated after operating expenses and repayment of debt to cover the rapid depreciation of the plant itself?
Ashtead may recover, but with such a high level of long term debt it will need a pretty spectacular set of results to bring about a rapid recovery in the share price..........and recent figures hardly inspire much confidence in this being the case.