Ann: Q2 Trading Update, page-155

Jus to add a few facts to what you are saying.....

"Plenty of Companies have Items on their Books they claim has X Value but in real terms has no value."
Incorrect. If it has no value, they have to write it off. Intangible assets do have value otherwise no business would ever be sold at a premium. ​

"Myer is writing down a few of these things as non-cash writedowns, so it can write 40 milion off the net profit in one tick."
They wrote off Sass and Bide (predominantly) as this is the goodwill they paid for the business, that has failed. Effectively they are admitting they overpaid for the business and taking the goodwill out of the balance sheet (as an asset) and expensing it. This is cash that they have previously paid - it just hasn't come out of thin air. Yes, they wasted money and overpaid.​

"IMO its kind of like a strategy to reduce tax paid on the total profit, But Im not saying this from an accountants view because Im not sure."
No strategy. It is not a good thing to write down goodwill like this. Yes, it reduces tax, but you are admitting you threw away cash in a bad investment. Much better to make profit!

At the moment MYR has intangible assets of $986m and Net Equity of just $1,073m. So you can see that MYR's value is largely it's intangible assets.

'But the Facts are the the Myer Mine isnt running out of Iron ore, and the Iron ore Price wont hit Myers revenue by 50% if the Iron ore price dips."
MYR is worse - it is running out of customers (which they admit in the Q2 update with foot traffic reducing. A mining company can just stop production and leave its asset in the ground for a while. MYR has to find customers to sell to every day.

"Myer is pretty predictable within 2-3% of turnover and revenue. Things arnt going to dip or Improve in any great leap beyond 2 or 3 %"
The Q2 update by MYR proves this is wrong. They said:
"Sales during the first two weeks in December have weakened further and were down 5% in the previous corresponding period.".... and ends with ..... "A significant proportion of annual NPAT is generated during the second quarter. Myer expects 1H 2018 NPAT (pre implementation costs and individually significant items) to be materially below the previous corresponding period. Given the recent sales volatility and considering the magnitude of sales expected in the coming weeks, Myer does not have a reasonable basis to provide a specific profit range for the half or full year at this time."
Materially below means more than 5%. The fact that they have delivered this update before Christmas shows that they have their finger firmly on the pulse and they are worried for the H1 numbers.

"400 Million profit at the till per year on a Stock with a Market Cap of 520 Million."
I have no idea where you are getting your 400m profit from.

The numbers don't lie. There is no smoke and mirrors show. The H1 numbers will give the real story of the half and the Q2 update was just a preview of what is to come.
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