Reminds me of Talking Heads hit "We're on the road to nowhere".
Exactly. The vast sums this company has paid for goodwill on center acquisitions simply vanishes into thin air as soon as they start running the center in such a mean tight fisted manner that the centers deteriorate. Any write-down will be a token effort only as they need to appease their bankers that goodwill hasn't been materially compromised which anyone with any industry knowledge knows has occurred. Shareholders really are on a hiding to nothing with this company.
As Winner suggested this is indeed a slow motion train wreck.
Remember folks, this company has a net tangible asset backing of negative 29 cents per share. The "strength" of the company is ALL predicated upon the goodwill they paid for centers they acquired being maintained. Be very careful with this one.
Last edited by Beagle; 19-02-2018 at 10:43 AM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
yes, a reasonable shift on this news (no surprises there). tough going in a saturated market. EVO might be a good TO target for the likes of GEM(ASX).... try and keep the good (profitable) centers and get rid of the low occupancy crap ones that don't contribute.
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Originally Posted by percy
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