The dust has settled after the reporting season, with most pundits declaring it a winner and earnings better than expected. Overall, 3 out of 4 companies are exposed to significant financial risk. Yet, with the cost of debt low and access to capital relatively easy, unhealthy businesses can continue to trade. Most investors are focused on the larger end of town but as Elio highlights ”big” does not necessarily mean safe. Whilst crystal balling is always a challenging game – there was enough from the latest season to give confidence for the period ahead.
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