The recent announcement only mentions goodwill write down not...

The recent announcement only mentions goodwill write down not WIP write down which SHj did so I don't envisage any WIP adjustment at this time but if they do that at a later stage, a 5-10% write off of the $1b WIP on the books or about $50m may be prudent given the SHj situation. goodwill SGS is $720m of which $300m is missing NIHL WIP. Underlying goodwill is therefore about $420m. The cash flows from this are likely to be significant, motor division about $20m and the health division $50m. Not a bad return on $420m. The motor and health divisions aren't really affected by the regulatory changes, car accidents still happen and need repairs and replacement cars, injured drivers still need medical reports for small claims court and the legal division is mostly involved with NIHL at the moment and can be redeployed elsewhere if the legislation changes. It's hard to believe the write offs will be that much when you break down the components of SGS. Do you really think all the advisors EY Greenhill etc are such a bunch of idiots that 6mths after the take over and after $890m of injected equity that a significant amount or as Chanticleer suggests all would be worthless? These people have seen the books and reputations are on the line, all other commentators are operating on limited info. The bear argument is like Swiss cheese. They ignore any possibility that Medco delays or integration delays would delay rather than impair cash flows. They refuse to entertain any possibility that NIHL could even return the money invested in them which is certain given the warranties. AFR and all media outlets have NEVER mentioned the $200m warranty....NEVER.... Think about that.....why would you omit such an important influence on future cash flows unless you wanted to deliberately mislead?