great post, see my post on EBIT Margin, problems seem more than...

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jxkmarvin

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28/08/18

15:29

Post #: 35239082
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Originally posted by Downanout ↑

"The Project has experienced significant cost overruns due to several compounding project-specific issues, including external delays and materially worse sub-surface ground conditions than were allowed for in the tender estimate, as well as adverse weather conditions. These project-specific issues required the Company to continuously revise its execution methodologies to mitigate delays, leading to increases in subcontractor costs (both people and plant) and logistics cost overruns.

As a result of these cost overruns that arose over the life of the Project, RCR has realised cumulative writedownsof $57 million from the tendered margin on the Project."

As I wrote on 1 August:
Give me a break, this just has to be complete BS.

You cannot tell me that the management and the board watched the share price go down day after day from the start of May and didn't start asking hard questions about it. Either the management knew about it and said nothing, or worse still, they didn't find out. The idea that somebody, down the line, could successfully conceal the problem for the life of the project just beggars belief.

The management and the board are dammed either way.
Anticipating and circumventing that kind of reluctance to pass bad news up the line is contracting 101.

Furthermore, even if the people running RCR were deaf dumb and blind, somebody knew about this three months ago and traded on it.

But they will get away with it because, just like APRA, ASIC couldn't find its own AR$E using both hands and a GPS

Further below is a link showing what a fierce watchdog APRA has been, and ASIC is little better.

It is all worthy of the Sir Desmond Glazebrook's approach to regulation in Yes Prime Minister .

Are you worried about financial scandals?
Of course, we don't want any of those, but if you go for the sort of chap the chaps trust, you can trust him to be the sort of chap to see the chaps don't get involved in any scandals.
- He'd hush them up.
- No, any suspicion, and you have the chap straight out for lunch.
- Ask him if there's anything in it.
- What if he says no?
You have to trust a chap's word.
That's how the City works.

https://www.copyright link/personal...ne-shows-apra-is-no-tough-cop-20180817-h144b8

APRA and ASIC need to add some rotary wire brushes to their toll kit.

Cheers

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great post, see my post on EBIT Margin, problems seem more than just a $57M write down... .how the hell can you just all of a sudden call out "Surprise" we have just blown $57M

RCR Price at posting: $2.80 Sentiment: None Disclosure: Not Held
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Last 7.7¢		Change -0.023(23.0%)		Mkt cap ! $22.42M

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