less than 30 grand in the bank, broke Jacktrader (and others)..I...

less than 30 grand in the bank, broke Jacktrader (and others)..

I agree with your comments, but here are some more to consider. Their latest cash flow can be dissected as follows. (Excuse the spelling)

1. Debtors = Payables (other): This is odd that these 2 items match eachother perfectly. This is the cash flows from their Medical testing business that basically breaks even each month. The company have admitted this is non-core and they have no intention of investing in it. It's net contribution to the business is $0 per month.

2. Search Engine revenues are about $100k per month but the expense to run it is $150,000. Therfore it's net contribution is negative $50,000 per month.

3. DELAYED CASH FLOWS - See how there is a $300,000 cash outflow forecast in August. They have delayed paying thei July bills so they get hit with 2 lots of $150,000 in August. They have already paid this as their opening cash flow was $249k but in the announcement they say their working capital is only $99k. The difference is exaclty $150k which is the amount paid in August that relates to July.

4. They are effectively starting the month with $99,000 and they forecast the Search Engine business to be short about $60,000 hence the end of month balance forecast of $28,000.

5. How can a company continue it's life as a LISTED ASX company with only $28,000 in the bank? Given they need to print an Annual Report soon, release their full year financial results, and probably pay their accountants too, its going to cost them a lot more than $28,000.

6. WATER MACHINES - The first customer is only paying cost price for the machine it seems given the revenue of $300k matches the $300k expense. Note the following comment assumes their actually is a customer given the Directors have for the last 12 months indicated a sale was going to happen "next month". If I were the customer why would I pay a company going broke a big price for their product? I would just wait for them to go broke and buy it cheap later. Alternatively I would bust OPM's nuts on the sale price because OPM probably need the sale more than the customer needs the water treatment plant.

7. Continuing the theme from an earlier post here are some suggestions for management/Directors...
Dean Jones: Sell some shares mate! You aren't a Director, are not escrowed and are sitting on 450m shares worth about $900k. Dump on market and at least get some money out before they go broke. Why not? No need to be a martyr.
PS Same goes for Damien London too, take a few bob now rather than wait in vein. Dont let Peter J suck you in.

Glenn Ridge: Get off the Board ASAP otherwise your name will be in The SMH and AFR gossip columns looking foolish. Do yourself a favour, given you arent getting paid to be on the Board.

Terry: Same as Glenn.

Dr Albert Ho: Fool. You were one of the goons who tried to change the name of the company and stuffed it up. Great work clown. Your medical stuff is rubbish, you dont know jack about Ansearch and even less about the water project.

Charles Fridlender (Water business): Find some new backers. Peter and Albert have screwed you for 18 months now by not giving you any money to run your business and feeding it all to Ansearch.

OK cant think of anything else for now..lmorgante, is it you who sends ASIC letters about these guys? I think you have got some pretty good ammo to pen another letter.

Remember, my batting average matches my stock picking average :)

Cheers, The Don