PAC in Under the Radar Report today, page-7

Hey guys!

I'm having a bit of confusion with this stock.

Everyone keeps talking about debt and cash flow issues etc however, when I review the interim and annual reports looking to the balance sheet I keep calculating Net Tangible Asset Value at $7.01 per share. Assets 238,499,267 - Liabilities 41,440,448 - goodwill 0 / Shares on issue 28,125,955 = $7.01

This causes me to wonder how is there a cash flow problem? Can't they just sell some of their assets rather than do more capital raising?

Any capital raising while the share price is below Net Tangible Asset Value per share is a bit of a double hit to anyone who is not participating in the capital raise as it will:
1. Dilute your position and earnings
2. It actually reduces the net tangible asset value per share you have

Normally I'm cheering every time there is a capital raise in regards to stocks because normally net tangible asset value is well below the share price so current share holders really benefit from capital raisings even if they don't participate. Sadly here from what I can see it will not be the case.

It also brings up the question of: If Net Tangible Asset Value is $7.01 per share, why has no company come in for a hostile take over at say $5 and then liquidated the whole company?

I'm sure I haven't found a flaw here and that it's a major f*** up in my analysis on my part so if anyone could direct me as to what I'm looking at incorrectly I'd be most grateful.