city pacific bids for its survival, page-7

Nothing he says can be believed.

This goes for Michael West as well. Take just this one example (of many) of his deliberate omissions and distortions of the truth:

"- and last year's accounts showed some $100 million of loans were in default. What would that figure be now? We can only speculate.

Michael, there's no need to speculate, it's there in black & white in the company's presentation and you know it. Here's the actual wording:

Four loans past due at 31 December totalling $41.6m which represents less than 4% of total assets of the fund and down from $94m at June 30, 2007. All loans to be recovered in full.

Michael, why do you do this? We can only speculate.

Actually, I hold Fairfax responsible for this malicious brand of 'journalism'. Basically, if there is something in the company balance sheet which does not support Michael's negative assertions then he simply omits it. When he does include actual results he usually applies a negative spin. For example he takes the net after tax profit of 13.3 per cent, calls it 12 per cent and doesn't even bother to mention that that's up from 10 per cent published in the June 30 2007 annual report. Of couse not because that would sound as though the company was kicking goals. He doesn't mention that the company has reduced its gearing level to less than 50 per cent because, again that would sound as though the company was kicking goals. He doesn't mention that the dividend payout ratio is down from 85 to 80 per cent because... well, you know. It seems also to have slipped his mind that the company has never failed to pay an industry leading dividend, fully franked. I suppose it's fair enough. If I wanted to present an argument, the thrust of which was that a company was in deep sh*t I'd omit any positive bits too - otherwise my argument would fall apart and I'd look a bit silly.

Michael West and his publisher appear to be 'out to get' City Pacific in a national campaign using distortions and half truths and refusing to give credit where it's due, even in this extremely difficult market.

Alan Kohler simply rates City Pacific as a buy.

Enough said.


JC