TOO GREAT A RISK

Finweek English Edition - - INVESTMENT -

Evraz Highveld Steel and Vana­dium pro­duced re­ally rough re­sults but there is re­ally only one thing we need to know − whether the com­pany is a ‘go­ing con­cern’. In other words, can it pay its debts, some of which are due at the end of this year? Man­age­ment is up­front about these con­cerns al­though it’s con­fi­dently stat­ing that all will be well. How­ever, those in man­age­ment would say that, wouldn’t they? Per­son­ally, I would stay far away. Sure, there is the po­ten­tial for re­ward, but the risks are sig­nif­i­cant and real.

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