todays huntley update

quoting relevant paragraphs verbatim:

Event

* We, along with all our customers, are extremely frustrated with the situation. It is our and the markets’ understanding that Allco is a profitable company. Estimates for 1H08 profit is in the range $110m - $125m. When the result is announced we and the market will be more informed.

* Management has consistently advised that the underlying business/assets are performing strongly/robustly and this is what the earnings estimates are based upon.


Impact

* The slide in the share price has more to do with the financing of the shareholdings of management/principals than problems within the business. Aggressive short selling by hedge funds etc triggered the sale of significant holdings which were the security for margin loans. It is more difficult to finance transactions and debt rollovers when there is so much negativity surrounding any entity. The vultures are circling as they know there are some very good operations/assets in the Allco structure.

* Management will be fighting hard to survive and keep the company afloat but until there is some announcement forthcoming it is difficult to make a meaningful comment.

* When the stock is re-listed we will look at the situation rationally. According to rumours there could be a capital injection which would be dilutionary but could ensure survival. Market action has created a credibility issue so in the current climate we would like to see the audited accounts and management commentary, before recommending further action.