low, page-19

guys, allco's net assets at 31/12 were $2.408 billion

if they make a loss of $1.5bn, that will leave them with net assets of about $900m which is about 3x current market cap.

tangible assets are a solid $2.022 billion

goodwill is a non-cash item , so writing it off won't make any difference to the bottom line moving forward.

if they can get debt down to $400m then a much higher cost of debt won't make too much difference. if the interest rate goes up 5%, that's only an extra $20m a year interest on $400m of debt.

so it looks promising provided

1. allco doesn't sell anymore of its quality aviation, rail and shipping assets

2. they are able to restructure the debt


i will be topping up if she falls to 65c