little concerned... , page-40

Thanks Pioupiou.

Now that you have let the cat out of the bag....sigh... I must say that I was tempted to post that NCML is horrible and would be dragging on earnings for years. Cashfirst and TEF would be gobbling huge amounts of cash, and the debt will be going up, making TGA very very risky. Everyone better sell their shares.

And in saying that, I would merely be confirming the short term bias of many investors nowadays, and take advantage of the overdiscounting of vivid and near term uncertainties.

To dworld, the difference in the two leases can be googled. In short, based on my amateur knowledge, with finance leases, the interest income over the term of the lease is booked upfront as revenue, and the unpaid interest sits as a receivables on the B/S. With operating leases, only the rent due and payable for each accounting period is recognised as revenue, not the total rent over the entire period of the lease.

In effect, with finance leases, revenue is front loaded, whereas with operating leases, the revenue is matched. That is why TGA's revenue is likely to be understated by an increase in operating leases.

I stand ready to be corrected if I am wrong.