company in bad shape

I have conducted an analysis on the company and it is evident it is in fairly bad shape and I was wanting to know everyone opinions on the following is (which is pretty ovious and not groundbreaking):

- The company is heavily geared 54 % and is running out of money. As of the intermin reporting (December 06) the company had only $600k in cash reserves. Being heavily geared it is likely the company will have to dilute shareholders equity further through capital raisings putting additional pressure on teh stock.

- The managment has made a number of poor decisions in the past. The agreement with Acer woods to purchase an additional 10 centres was not the wisest decision. As the current centres are not running profitably let alone acquiring more, I think they should have just concentrated on making current centres more efficent then rushing to beef up their assets.

- The companys policy is to purchase acqusitions by 70% cash and 30 % equity. As a result each acquisition is diluting the holdings of the company by a further 30 % of the acquisition costs, further diluting holdings of the company.

- It is unlikely that ABS will takeover the company as it is already heavily commited to its expansion over in the UK and US and analyst have concern over their capital management. Also Mac Bank has a 30 % stake and could block any take over.

- Mac Banks holdings are interesting, although they purchased the additional 23% interest prior to the lack lusted iterim report, I am thinking apon the lines that something may be in the works with the bank and maybe they are planning on spinning off a new fund. Although the company is already heavily geared and this may be something that is stoping them doing this.

- If the company cant run these centres profitably during an economic boom we have had in the past 5 years what chances do they have of sucess with a possible recession on the cards?

- New CEO was appointed and management team although Roadshow presentation was a bit generic and not much info was given on how the company plans to transform the company.

Anyways I had a quick look through some of the report and this was some of the things i noticed. I would love to hear anyones feedback on my comments ect .