profit trebled, page-8

Afnut, good luck trading SCE. I'm not saying you can't have a winning trade.

All I am saying is that it's a fallacy valuing this company on their financial statements.

Their half yearly was significantly qualified by their ex-auditors, and for all we know this current piece of fiction will be.

The house of cards rests entirely on the value of the land and it's income generating ability.

Looking back over announcements I can only find purchase consideration of 170m shares (100m recently and 70m last year). Current market value of this is about $1m. Of course, if they can generate $4m pa then a value of $70m is probably ball park. However, there is no evidence of any income being generated (no money seems to change hands).

Something I find interesting is how the $35m receivable they recognised in the half yearly (and which was part of their auditors qualification) has now disappeared. Trying to get an explanation for this, or any of the many discrepancies in their accounts is well nigh impossible.

Just make sure you are not holding when the music stops.

cosmos