Ann: Healthzone announces completion of capital r, page-9

re: Ann: Healthzone announces completion of c... Thanks for the insight, Copied.

I must also agree to the surprise Patient because the Financial Reports were pretty upbeat - smoke and mirrors maybe?

Eu Yan San and the other subcribers to the recent share issue will be spitting chips for sure after parting with the $9m.

My quick glance at the 2011 Financials only revealed one concern which was the qualification in the Audit Report on inventory valuation. This qualification is quite unusual and had been playing on my mind recently. In hindsight I should have followed my gut feel and bailed out - another lesson learnt.

This is all a bit strange and the truth will emerge. If there were doubts about the receivables then why wasn't there an impairment or provision against some of them? Surely the auditors would have been onto that.

There has been no suggestion so far that the business fell into a massive hole since 30 June 2011.

There are plenty of intangible values on the Balance Sheet so good luck to the Receivers in clawing any of that back if they sell the business or parts thereof.

We can only wait and see, but it is not a time to be optimistic.