The $86.1m goodwill writedown is huge. Means they paid too much for their hotels. Some of the reasons are a bit thin - ie smoking - they bought most of their venues just before smoking hit, so it should have been factored into their calculations for purchase price anyway.
However, it is a prudent time to do so, full kudo's to the board for doing so (not that they had much choice). Take the whack now while everyone else is, doesn't look so bad in the overall climate (even though hotels don't normally get hit during these times!).
Then they should have some good news next year to build on this lower base. Whilst I sound negative this group has potential, lets hope they get support beyond June 09 to give them time to claw back.
Not my cup of tea just yet, but I watch with interest. Good luck holders, your multiples certainly have potential in the mid term.
DYOR yada yada.
NLG Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
