bullish chart underway, page-15

Wealth888

in response to your questions this is what I think

a) Unlikely, they are not in breach of any ASX Listing Rules. Sure they are not updating the market on all their asset sales BUT neither did CER. They only made an announcement once all asset sales were complete.

b) Receivership/Voluntary admin, maybe a possibility but I am leaning more towards that they will get them selves out of this mess. Valad is cashed up and the debt covenants are not in trouble of being breached. Asset sales have been taking place since late last year so there should be much more room for them.

c) UNLIKELY imo

I guess if we went into Admin then shareholders (according to some experts and analysts here on HC) believe we should be receiving upwards to 15c. In which case at current sp, you are still not loosing anything if valad goes into admin.

The 2nd scenario is that someone will take valad over. There has been media speculation that Dexus is in the running as well as the McCabe (Director) but once again only SPECULATION....if this is the case then it would depend on the sp. Obviously if the sp is in the low 6's the offer would be imo around the 8 - 12c mark.

Realistically this should be knocked back as we should be receiving something close to the NTA, which at 31/12/08 was 51c...now again some analysts have downgraded that to as low as 30c for the P/E 30/06/09...again not bad at all if you are buying at current levels