Ann: Resignation of CFO-VOC.AX, page-57

I posted this on September 21st
I had a feeling the CFO overestimated the company's equity,
But I didn't research further as I didn't hold & wasn't intending to

Last night on YMYC
Howard Coleman said he sold Vocus from his SMSF
Due to problems with their accounting in the EOFY/16 report
The main problem he found was the goodwill added to their equity
Over $2 Billion extra that wasn't there before the Amcom & M2 Group acquisitions
His said it was like putting $2.00 & $1.00 in a hat, & pulling out $5.00

I originally said there may be an equity writedown,
Howard said last night,
Don't be surprised if the equity is written down over the following years

No wonder the CFO resigned

With the equity overvalued,
It lowers the ROE,
Which is an input a lot of people require for accurate valuations, including me
Without correct ROE,
Are left with EPS X PE for valuations

I stick with my original valuations above
Looks fair value ATM