summary for the week - please reply, page-14

  1. 64 Posts.
    Bad news Karasco

    You have not calculated effect decline in asset prices.
    Your calculation ...
    Assume a further decline in values of the assets in Australia/Asia by say 10-15% and US & UK by a further 20-25%

    The NTA of each (I have used 20% discount)

    REvised NTA

    GMG from $1.05 to 0.84cpu sp= 0.26c a discount of 70%
    GPT from $1.43 to $1.14cpu sp=0.47c a discount of 58%
    IIF from $1.66 to $1.33cpu sp=0.083c a discount of 93%
    .........
    You apply the decline in asset to the NTA.
    You need to apply to gross, and then deduct loan to calculate new NTA.
    If LVR is 60% and assets decline 20% then NTA decline is 50%
    Eg Approx NTA's based on 60% LVR would be about
    GMG 53c
    GPT 72c
    IIF 83c

    regards
 
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