Ann: CCV Strategy Update, Board and Management Changes, page-7

The 100 days to change will produce the inevitable laundry list of write downs. Given there is $110M of Goodwill on the balance sheet the change of a big non-cash charge i recon is quite large. Its non-cash so who cares it simply reflects the balance sheet catching up to the share price.

Bigger risk to my thinking is that there is substantial change in direction - like exiting payday and getting into something else which requires a substantial capital investment. That is real money. Without getting to extensive analysis it looks like regulatory environment has evolved such that revenue is capped and the (regulatory related) costs of acquisition/approval are such that the market is generally responding by exiting.

With a $60 repayment of their Westpac facilities over the next 12 months, a recent class action settlement and another on the boil (chances of settlement are high given the circumstances) add some capital investment to boot, the strain on their cash flow is going to be quite large. chances rising for a difficult equity raising are looking more real.

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