Hi Laurra,That was a fairly tame defence of ATC, and its...

Hi Laurra,

That was a fairly tame defence of ATC, and its business virtues.

The Q1 results (and recent ASX releases) for ATC clearly demonstrate:

1)
A rapidly declining cash position.

2)
A poor receivables realisation position (ie: not getting the money in through the door).

3)
A potential /emerging billing management problem.

4)
A confused FNT acquisition strategy (where we have gone from a highly certain deal in July to one which, despite its September revisions, appears to have unravelled completely, based upon an objective analysis of ATC's announcement of 1/11:

"....Should the review not result in a positive commercial outcome for both ATC and FNT, then ATC and FNT will move to finalise discussions as soon as possible thereafter...."

Why then the need for further discussions?

Why not simply proceed to completion and settlement of the previously announced, revised arrangements of 12/9?

5)
A confused ASX disclosure message.

On 28/10, the ASX release regarding the USA commissioning activites included contact references to FNT. The 1/11 ASX release, however, mentions FNT, but otherwise contained no FNT contact details.

The 1/11 ASX release is the more accurate one (ie: in terms of complying with ASX Listing Rule requirements), whereas the 28/10 ASX release is potentially misleading, especially given the FNT contact details.

If, however, the 28/10 ASX release was not misleading, then clearly something else has happened between 28/10 and 1/11 which has not yet been explained to the market.

Anyone with either market intelligence, at least half a brain, or just mindful of corporate governance would immediately realise the nature and extent of the inconsistencies existing here. So, Laurra, do you have any views on this?

6)
Fund raising difficulties, particularly given Griffin's appointment back in September, their bullishness on closing on the financing deal, and their complete absence from the business scene since then.

7)
ATC's September optimism about closing on 31/10 with a $15m payment to FNT which, by end October, had been all but crushed - unless I am mistaken about this.

8)
Strange forward looking revenue /profit projections which, in July would have resulted in the same level of profit (albeit, a wording discrepancy) generated as was subsequently announced in September, despite a $20m increase in revenue projections, from $210m to $230m. So, perhaps things may not be as profitable, or high yielding as we have previously been led to believe.

Laurra, I feel for shareholders such as Tebley who have genuinely believed in the prospects of ATC.

For myself, I have followed ATC for some time, but have not to date invested in them. I prefer doing my research first, or analysing and analytically defending an announced position. ATC, in my view, does not yet qualify in these terms.

Indeed, its Business Plan is missing some clear details, including under-stated Q1 expenses. These included transmission costs, consultancy fees, travelling & accommodation which were all prominently highlighted in the H2 results, but strangely missing from the Q1 results. Now, go figure that?