Bizarre indeed the SP and volume spiked.... My belief on the write downs of future dividends relates to the funding of the US business. I think that they itemised the ongoing cost of the US business as a provision against future dividends as opposed to the traditional method of a 'sunk' expense. Therefore if the US business made a profit they would have to pay back these expenses from the profits. Great in theory especially if the business makes a profit.
As the US business is never going to make a profit, the expense is therefore a write-off. Either way the US business was a massive expensive failure.....
The biggest concern for me is that the business runs at a loss in normal operations which is never good when you have significant debt ... If I can find a positive its that we are talking small numbers so if something comes form the Chinese alliance then things can reverse quickly... But as previously mentioned that's seems to have gone quiet,..
MUT Price at posting:
0.3¢ Sentiment: Hold Disclosure: Held
