I dont really know why everyone is getting that excited about the forshadowed asset sale. Everyone seems to know about it (it was in the annual report right)? Following efficient market theory, the news is already priced in (although I am not a die hard follower of this theory). In terms of the balance sheet its just reducing an asset to reduce a liability (they are using the proceeds to reduce bank debt right?). A bit of a switch a roo. The markets only going to get excited if the sale price is significantly higher than the recorded value thus a nice juicy gain. Also all its going to do is save some interest. All this is good but nothing amazing. The number one game in town is DC. All the other stuff (cost reductions, reduced interest while good) when you compare to the dramatic effect of DC on the business is simply window dressing!! Any news on the the deadline of early March being adhered to? You can just hear the big banks using the continued and spiralling global credit crunch as an excuse not to administer? The real spike in the price will be when DC actually takes effect and the market feels confident about how sustainable transaction volumes will be in the new order. These are all risks and this is why you can pick up CUS at 10cents right now!!!
CUS Price at posting:
$1.00 Sentiment: Hold Disclosure: Held
