After having a look at the Vocus Balance Sheet. I'm amazed that it hasn't been put into a trading halt by the ASX. My reasons are:
|
Column 1 |
Column 2 |
| 1 |
Working Capital (if stopped trading today) |
-1646.6 |
| 2 |
- assumes "other assets" are liquid) |
|
| 3 |
Gearing ratio (debt to total assets, excl goodwill) |
92% |
The Balance Sheet is being propped up by Goodwill which of course has no intrinsic value at all. Basically we own 8% of our assets. That is pathetic.
Hindsight is a wonderful thing and I should have sold at $3... but now, will be delighted to get that.
Sorry for the negativity but it annoys me when we invest in good faith and management stuff it up big time. Vocus was the darling of the IT world before it bought M2 and others. They convinced all of us that they could integrate the businesses easily and of course have failed dismally.
They have to sell the NZ business to reduce their debt. They should probably look to sell the M2 business if they can and wear the loss and get back to core operations.
But I think that Horth has too big an ego and believes that Vocus should be bigger than IBM!.
If I am still a shareholder at time of the AGM. I will be voting to unseat Horth (not that my value of shares will count). I do think that the entire Board should take a huge remuneration hit. The SP was over $9 not that long ago.
Sorry for rant but Vocus has annoyed the crap out of me.
