Thanx for the reply.I think one option that comes to mind since...

Thanx for the reply.I think one option that comes to mind since the sp is trading well below my calculation of intrinsic value,is if retained earnings can't be properly deployed by management then i think Gerry and co should consider an on share market buyback program to reduce the number of shares outstanding and effectively increase the earnings per share in the process and to improve or maximise shareholder value in the short to medium term.This can be an effective method.

To many listed companies don't know how to effectively use the share buy back method reason being is many listed companies over pay for the shares and use this method just to prop up their share price and think they are doing the shareholder a favour lol.The true method is buying the shares back when their considered to be trading at a discount or below the companies intrinsic value.I think in an environment like this gerry should at least consider this option even though it hasn't been done in the past.

As far as the "Enron style manipulation of accounting proceedures" go, funny you mentioned this lol as i watched the documentary a few weeks ago again, but i don't think we'll go that far lol harvey aren't cooking the books.The Enron debacle was pritty obvious and on a much bigger scale, but one method out of many to use is the cash flow numbers.Very difficult to manipulate nonetheless possible ways of manipulating the cash flow statement and u can use this test on other companies is:

1.Stretching accounts payable (pushing payments out)
delaying payments to suppliers(one off boost to cash flow)
possibly company struggling.

2.Financing accounts payable (borrowing from bank to pay off accounts payable,company classfies accounts payable as notes payable,pays off note later and reduces cash flow from financing. Then cash flow from operations remains artificially high.

3.Securitizing of receivables

These are just some examples to look out for.

and also had a quick browse through the annual reports and the numbers seem to be conservative these aren't pie in the sky numbers for the property portfolio. Have a look for yourself.They are more so to the conservative side.I'll leave the number crunching to you but in no way shape or form are they any representation of an enron style manipulation lol.

At the end of the day Companies can bulls@## all they want and find shortcuts to make the numbers stack up nicely at end of fy, but keep in mind if companies do want to cook the books or fudge the numbers then soon or later the company will run out of accounting tricks and the market will eventually punish the stock, hence you can't go on like this foreva.


cheers