understanding the result

Im not gonna take sides here as I could care less which way it ends up so long as I can make a buck trading it

I was in and out twice for a profit and bought a smaller position just before the close at 47c


Im just gonna state facts and leave it to you to draw your own conclusions

1. The company made a Net Loss of $389M = 40.7cps

2. This included intangible items of $476M

3. The company made an underlying Profit of $67.7M = 7.1cps

4. All the debt covenant breaches have been Waived so basically risk of default has been reduced or made less strict if you know what I mean

5. They expect 2011 NPAT to be close to 2009 which was $80m this makes sense as the loss was mianly caused by intangible write downs


Well it seems to be the pivoting point of value here is understanding the goodwill and intangible write down

Im no accountant so cant really comment but the one thing that keeps ringing in my head over and over again is

Net Loss of $389M (40.7cps) vs Underlying Profit of $67.7M (7.1cps)


Like I said this is a trade for me so I will cut my losses or bank my profits soon but I for one do not fully understand the result and think management need to clarify this

then again I could be a mug