QAF

Yesterday the selling down with a wide Bearish bar coupled with high volume + price was down 4.5 cents to close at 70 cents looks super bearish!

The chart is damaged and price may likely continue to go further down.

Short term wise, I think it may go down to retest 68 level.
Breaking down of 68 cents with high volume that may see further selling down pressure and press the share price further down towards 60 cents level.

Current PE I think is very high at around 50x.
NAV 89 cents.
I am doubtful they can maintain the dividend of 5 cents looking at their FCF being generated.

Just had a looked on their FY 2018 cash flow statements.
FCF is negative for FY2017 & FY2018.
seem a red flag to me!

FCF for FY2017 , Net Cash from Ops is $61916 less Capex $60660, FCF = $1256. Dividend payout of $19206  How to support this kind of dividend payout..

FCF for FY2018 is worst . Net Cah from Ops $20932 less Capex $74384 , FCF -$53452.
Dividend payout of $23441.  Looks scarely..

Had also looked into their recent 1st Quarter 2019 financial result.
FCF looks slightly improve but is still far from enough to cover the dividend payout of $23441.
I think dividend is not sustainable.

Not a call to buy or sell.

Pls dyodd.