As I read it, they valued their stake in the factory at $52M had to cut that to $20M, to sell 80% for $18.8M.
The remaining 5% that they keep is worth $1M2.
Best Wishes
Paper Tiger
Printable View
A quick look into the balance sheet of the last company report and after the sale of this asset...
Stated Value ($ million) Real Value ($ million) Cash 10 10 Trade & Other 48 48 Derivatives 2 2 Inventory 46 15** Trade & Other 6 6 Property Plant & Equipment 87 32* Intangible 25 0 Investments 12 12 Deferred Tax 5 5 Plus 19 million from sale 19 Total 241 149 Liabilities (which I can't see any upside to) 84 84 Position 157 65 CPS 0.82 0.34
* This was calculated at 87-32=55*0.59 (same ratio as assets just sold at)
** Assuming a fire sale on their inventory, most likely if company goes belly up
Not including share capital, negative reserves etc in here as well... I aren't a financial analyst though, feel free to correct any mistakes I have made!
20% price jump from a pretty negative news. Or is it actually positive? I thought that factory was the best asset they have. The one that they can actually use to generate profit. A slow death with a thousand cuts.
Oh and can I mutter the words "insider trading" under my breath for the Monday to Thursday rise in SP?
I can't wait to see the next Rakon financial report.
I think we are looking at a take-over very soon, their are hints in the report "Market consolidation"!
Yeah and some poor suckers got in at 27 :) Sorry Sparky but for every buyer there is a seller ;)
But yeah, buyer beware with stocks like this.
One most nasty company listed on NZX. AVOID!