mfs announcement due this coming week, page-4

Equate some recent press - (and comment here)....to say winning gold lotto, but then presenting a list of possible negatitives of such a winfall.

Likely strong shareprice gap upside here, upon release from halt. How could that not be the case.

Sure they are "scratching" around to find a small amount of cash to settle a pending loan.....amount involved is small in relation to their annual after tax earnings of (guidance fy 2008 $270 million). Not good, but not overly significant. Other companies find themselves in this situation and either manage OK or raise capital .....but no, MFS is under such spotlight. Company is finished because of a $40 million shortfall....yea right.

That dumb wish list/ type announcment the other Friday.....allowed some savvy traders (thanks to Rams and Centro situation) to snap a bargain. I knew the story with RHG and CNP....spend 20 minutes on MFS and disclosures and purchased 4 times at average of $1.02. No banks seek their money back here....totally different to the other two.

What is the problem with the amount of 2010/2011 debt -not a concrn to me.... great the company has grown quickly in just the right sectors - how can a company grow quickly without debt outherwise.

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Just again on the issue of enterprise values and relevance of debt in a sale or part sale of a company.

As most investors would be aware BHP, is seeking to acquire Rio. In view of all the debt/enterprise values discussions here re Stella......why have we not heard about outstanding Rio loans.

Answer is:....because, in this context its irelevant.

BHP in a successful takeover.....will take over all Rio's loans (liabilities) - all their assets/future earnings/growth profile etc.

OK you say....this is different, a part sale of Stella is proposed. What difference does it make.....imagine the situation whereby in BHP/Rio case, a part purchase is made. Would debt then all of a sudden become an issue. Of course not....BHP would own hald the debt/half the profits/ etc, etc.

Should half of Stella be sold for say $750 million....then half of Stella loans would be the responsibility of the incoming buyer....off MFS books. MFS would generate $750 million cash and a simple case value of Stella, would be $1.5 billion. Nothing to do with enterprise value, or some form of debt transfer calculations.

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It took me three years of full time (10 hours a day)....before the penny dropped.

As a guide to when you get there.....I would suggest try to reach the point....when you can read a story, or broker report about the stock you follow - and in your mind you can say.....THATS CORRECT - THATS PART TRUE - OR THATS WRONG.

As part of the whole process, risk to reward models come togeter in your mind and YOU can value a stock....not the market or somebody else.(YOURSELF)

Having said all that...its not possible to get everyone right.

I am sure this info will be quickly lost amoungst the mire of other MFS postings.....however maybe it would be of interest to a few investors.