still holding, page-2

I will be surprised if the market treats this negatively. One of the best figures I have come across in my reading this morning is a positive operating cash flow of $23.9 million for the second half compared to -$14.9 million in the second half last year. It has been cash flows that have been concerning me. with all these write-offs and sales, operating cash flows are perhaps the best way of seeing if the underlying business is actually producing results.

My calculation of the price/book ratio that I have been referring to, is that it is now .185. This increase is of course due to the fall in net assets and not an increase in share price. Even accepting the quite massive fall in net assets, the price/book ratio is still very low compared to similar stocks. Hopefully they have written down the forestry assets to prices that are much closer to what they will eventually get in selling them.

GPASAS