Ann: Annual Report to shareholders, page-47

I had a hand in the bounce in the stock price on Friday. I bought a couple of reasonable sized parcels for some investors that I advise and took out most of the available stock at 29c, the stock then to my surprise very quickly bounced up a few cents. I have no idea who followed my initial buying. I thought 29c was a great as I myself had paid more.

So I really like the stock. The story is great, the expansion is going well, however this current report is a bit messy.

The headline numbers look awesome. However once you look a little deeper, the balance sheet isnt so good and definitely holds some questions marks. The debt is high, but I believe manageable. The intangibles are an issue. Why, because they are counted as assets. The value of intangible assets are based around the profitability derived from those intangible assets. And it is possible that those intangible assets maybe overvalued and need to be written down at some point, thats where things can turn bad as those intangibles are used as backing for debt (lenders usually look at total assets not what forms those assets). So if the accountants at some point say we need to review the carrying value of the intangibles, then the debt becomes a huge issue. I think that is what is spooking the market. Because although earnings are increasing they may not be enough to justify that level of intangibles.