on a knife edge

On a knifes edge again. I suspect 41c NTA is perversely our downfall. Too much excess equity so banks/bondholders can throw us to the wolves in a fire sale and be sure to get there money back (plus excessive fees).

The punter in me just couldn't resist +40c NTA at <2c share price but when something is too good to be true it probably is. The world seems crazy when 60% gearing with multiple times interest cover means shareholder wiped out on the whim of bankers who having lent you their umbrella now want it back when it starts raining! Even after asset write downs I wonder how cheaply assets can be sold by ruthless banks who see better opportunity now amongst the carnage and so want their money back at any cost? MAybe enough to get 2c back in a couple of years time after the fire has passed and fees skimmed off.

I feel for holders from higher up if this ends badly (though this is perhaps one punt more than I needed given how OZL and so many other dabbles are panning out ..... death by a thousand dabbles:). Perversely RJT were in a pretty good possie because of how early they hit trouble. Closed out currency hedges for a sizable profit to pay down debt where others held too long and into major losses. Also have all there NTA in 2 of the three "portfolios" with the third one negative equity and non-recourse debt (TK3). Means their gearing is actually not so bad if TK3 is cut loose.

As I said .... crazy world.

sentiment...jaded