The Company has a negative Net Worth. It has a negative liquidity ratio and is in breach of its bank ratio's - the NAB calling in the loan. They may have a line of credit from an associate - but bet your bottom dollar, the line of credit (at exhorbitant rates) was probably funds transferred at some earlier time as a management fee or the like. The Company lost $41.6M.
It value per share is not attainable as there are no net assets (is net debt) to give a base line and it is impossible to guess future earnings. The past years performance indicates extremely poor management - to allow the losses to expand so far.
Why Westpac is buying in ? who knows????? There is more to that then the poor average slob shareholder will know.
I wouldn't - at this time touch this stock. It's current market price is 14.5 cents per share and it is in my opinion 14.5 cps overpriced.
westpac buys 5%, page-2
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