I'm very confident that the revaluation of the trees has been reported in the half year accounts complying with Australian Accounting standards. What I'm trying to point out to people is, don't just focus on the bottom line number of the PL statement. The cash flow statement is more important.
Wrong on the reporting of half year reports only containing losses until now:
HY14 - $3.2m profit
HY13 - $4.8m profit
Interestingly, both halves have negative cash flows. However the full years have positive cash flows. FY 13 became cash flow positive after the sale of $22m of the loan book, FY 14 became cash flow positive after the issue of $60m+ of shares.
Don't get me wrong, I'm a supporter of the TFC vision, and want to see it successful. I've been an investor in the past, and wish to be again. I can come to a fair value around current prices, and a future price that is higher (based on this I've changed my sentiment to 'hold'). It's just for me the above things have given me enough caution to keep watching for now to see how it pans out, and I'd like to offer alternative thoughts for others to consider.
As always DYOR and don't base decisions on my or others posts. Good luck to all.
TFC Price at posting:
$1.78 Sentiment: Hold Disclosure: Not Held
