response to posts on the day trading site

I received the following comments on the day trading site and I would just like to respond to them.

"GPA,

If you are relying to tax payments, to make cashflow positive, AFTER selling off assets, you are in trouble. Secondly, operating EBIT was in the negative. Thirdly, NPAT despite EBITDA being positive was also negative.

That tells me depreciation and amortization made up the positive, along with a tax refund.

AND all of that relies on the adjusted schedule (i.e. no writedowns) so there isn't really a saving grace in that report, thus the sell down..

This will be my last post about this, as its off topic.. but I'll give you some advice Endless and Giz gave me a few years ago and it has served me very wisely.

If the market reacts the opposite you would expect to a piece of news, either you are wrong, which is likely, or the cumulative market is wrong, which is very rare.

Now do you think, in a well-known business such as this, the market has made such a huge error on their reaction to this report? or perhaps your position on the stock affected the tint on your glasses?

Just my 2c,"

Note 2 on page 92 of the preliminary final report confirms that the operating cash flow was $11,502,000 as I quoted. The tax payment was taken away from the cash flow not added to it. The other figure quoted in this abnormal way of presenting cash flow e.g. income tax expense $114m was a write-down of the deferred tax assets from the balance sheet. Companies tend to remove this type of asset from the balance sheet when they make losses but it is still within the company as an asset if and when Boart gets back into profit. It was not cash and did not affect the cash flows. It just added to the statutory loss. It is the same for depreciation and amortisation. They are not cash figures. I believe that the cash flow is a very important figure for a company like Boart which is clearly struggling. The fact that it achieved a positive cash flow in these circumstances is very positive for the shareholders.

Your suggestion that I should follow market reaction doesn't work for me. I do make mistakes but so does the market and particularly when there are so many short sellers trying to push it down. I believe too many investors just follow the path set by others.

Thanks for responding. I did not include your user name in this response since I copied it to here and should you not wish to have it drawn attention.

Regards

GPASAS