just gone through the AAD yr end results.Alot of negatives and...

just gone through the AAD yr end results.
Alot of negatives and not much in the way of positives.

The only positive i could see was cash flow from operations of $68 million or $0.22 per security, this compared well with cashflow for the 1/2 year to dec of $31 million.

Diluted core earnings per stapled security was 11.4c. However the core EPS for the half year to dec was 7.78c. Therefore the second half year to june recorded EPS of only 3.6c per security (below the dividend).
This shows the sensitivity of revenue relative to the fixed cost base.

A further concern is the DRP plan which is further diluting unit holders. AAD has a shocking record of allocating capital. This could well have been due to it being under the old Macquarie unbrella (where bigger is better as more fees can be ripped out of it), but what concerns me is the transition of current management from the old Macquarie to the new AAD, same management, just different structure. This is easy to see by looking at the increase in shareholders equity over time and comparing it to net profits. Its also easily identifiable by looking at the long term movement in ROE.

I notice as well minimal ownership of AAD by management.
Senior management salary compensation is good (for them), so they effectively get compensated regardless of the economic performance of AAD.

The only glimmer of hope is the talk about improved revenue in July comparing month on month.
Well this is only a single month so far, so we need to see this continue for a while.

What i can tell you is that the current share price of around $0.95 is only at this position because of the commentary re July improved sales. Hence the current price is being supported by the commentary.
Otherwise it would have gone south with the release of the final profit report.

Things are potentially turning around, but its definately not a sure bet, even at current prices.