We're about 60% through the reporting season and according to...

We're about 60% through the reporting season and according to the major dailies some 75% of results have 'failed to meet expectations'. The expectations are those of analysts who use company releases, briefings with management etc to gauge and forecast what the company's financials and future prospects will be.

The fact that most have been wrong, and some badly wrong, indicates the analysts are hopeless or the info previously available has been embellished and covers up true state of affairs. Right now trust in CEO's is on a par with that of politicians and car salesmen. No one seems accountable whilst the life savings of shareholders is depleted.

Santos is in trouble. Blind Freddy knows that. Contracts to sell LNG were made at double today's spot prices and Mr Market doesn't believe the terms will be adhered to. Santos has Billions of dollars in debt and unless price of its products leaps 50% it is impossible to see how this money can be paid, let alone have enough left over for dividends.

Wanting the Aussie dollar to collapse is not a strategy. We live in just about the best place on earth and foreigners will pay over the odds to get here. Why should our currency be less than places where car bombs, crime, tax evasion etc is rampant. Its not going to happen.

Just about everyone including the merchant banks expect a capital raising is inevitable. Yet all we hear is that everything is rosy and not to worry. Well if that's the case how come SP has gone from $15 to $5.60? Why does the SP drop virtually everyday despite sounds of reassurance from management?

Its because the market doesn't believe you. Mt Mkt doesn't buy the 'everything's going to be alright' statements emanating from the company hierarchy. Why should we when the LNG and oil price has hit 5 and 9 year lows respectively? Its absurd to pretend the situation isn't serious.

There are thousands of shareholders who have kept faith with Santos after paying $13-15 per share. They see their investment has halved and they don't know what to do. They feel duped, be it by analysts or company reports.

Tomorrow is the year end result and outlook statement. Its time to face up and tell shareholders the bare truth. Does Santos have implicit faith the contract terms are sacrosanct? How does Santos intend to pay the huge debt? What is the future dividend policy?

We've just seen one of the country's most highly paid CEO's announce a CR despite 3 months earlier tearing into a journalist who suggested as much. It seems Australian management have become just like their overseas counterparts i.e. tell the mug punter shareholders what they want to hear, then wash your hands before strolling down to the club. I never thought it would get this bad.