myr could have more bleeding if like tol, page-9

I have had a bit of a look at MYR's half yearly presentation which has figures as at 28 February 2012.

http://www.asx.com.au/asxpdf/20120315/pdf/42516qrycyfrj0.pdf

This shows -

1. Total borrowings of $420m (which is less than what I recall seeing in the past, but

2. total creditors are $487m!!! - which seems very high, and

3. Other liabilities of $259m (this things looks like unpaid leave and long service leave due to its staff etc

- and therefore MYR owes $1166m


4. Stock on hand valued at $391m (but worth a lot less in a liquidation sale)

5. Other assets of $67m (possibly mostly receivables, I suppose)

6. Property $27m, could be worth more or less depending on market conditions

7. Fixed assets of $497m!!! really? They would be unlikely to realise anything near that if they tried to sell the stuff - but it probably reflects their cost of acquisition minus depreciation

8. Intangibles of $947m!!! - yeah, right - this the fudge figure that the yanks assigned to Myer in Goodwill when they ripped out the real value of Myer by selling its property and saddled MYR with a heap of debt;

9. Cash of $122m, which is substantial

- so total assets of $2051m, which gives net shareholder equity of $885m.

However, in my view net equity is negative because I would not assign $947 to intangibles, because this is mostly just a figment of the accountant's imagination. In addition many of the assets would fetch much less than their reported values if they were sold, in particular fixed assets.

In regards to how quickly intangible assets can lose their value, just think of newspapers, especially the Fairfax group.

loki (Just trying to cheer up MYR holders - or warning them that if MYR is unable to generate a reasonable income stream then MYR does not have any assets to support its accounting valuation for shareholder equity of $885m).