broker research, page-11

I'm looking at the CommSec Forecasts page for BBI right now.

The Analysts: WILSON HTM SECURITIES, ABN AMRO, GOLDMAN SACHS JB WERE, MERRILL LYNCH (INTERNATIONAL RESEARCH), UBS, CITIGROUP, CREDIT SUISSE - AUSTRALIA, J.P.MORGAN, MORGAN STANLEY.

1/9 STRONG BUY
2/9 MOD BUY
5/9 HOLD
0/9 MOD SELL
1/9 STRONG SELL

Four of those Analysts put in earnings forecasts. All between 3 and 3.4 cents for 2009. All between 3.5 and 4.4 cents for 2010.

I understand this company has some great assets, but the Liquidity Ratio should really be setting your alarm bells off. At 30 June they were carrying $961 million current assets against $1408 million current liabilities.

If they can't pay their bills you can say hello to a firesale (forced liquidation) of assets.

No disrespect to BBI, CNP, VPG bulls, but why is everyone so keen to ignore the Liquidity Ratio of these companies? This is first year accounting, people. Yes, they have some top shelf assets, but it doesn't mean they can pay their bills as they fall due.

Good luck.