is this company worth investing in at all?, page-3

Hi guys,

the offer is 9 for 14 at 50c (not 1 for 9).
the following is my personal belief only, and no one should use this as any form of advice.

the SP has declined largely due to -
1 - the large debt facility (creating uncertainty around banks continuing to extend loan facilities),
2 - high repayment schedule eroding profit,
3 - writedowns of assets (the problem of buying in the good times at inflated prices),
4 - Board movements (ie Peabody moving on last year),
5 - Manufacturing delivering a shocking result (annual loss) - inefficiency, waste, and failure to address changes in market (ie macro-economic issues),
6 - Commercial Vehicles suffering a significant decline in revenue and profit - economic factors largely to blame here

the underlying business is very strong - read up on the strong waste growth in both solid and industrial divisions, manufacturing is turning around (senior management were removed and the org chart re-aligned), and commercial vehicles will improve as economic conditions improve.

i have taken up my offer in full, given i feel they have reached the bottom in terms of uncertainty (ie loan facilities renewed, retail and institutional offer will pay down debt, repayments are lower, new management structure in Manufacturing).

Asset Write downs are unavoidable - however as above, i feel these are now out of the way - ie deepest cut has been made, loss realised on the books, business re-valued.

this is my 'layman's view' - i am prepared to hold, and I see only better times ahead. lots of positives, and given how quickly this company has grown, they are only beginning to mesh it all together - therefore future looks good.

at least all the 'bad news' is out there and has been dealt with.

good luck