showing signs of life, page-3

Munch

these are the comments I refer to above:



Recommendation: Sell/Avoid
After the disappointments of the profit warning, the details revealed in the result did not provide any clearer picture of how ALL is going to get performance back on track. Rather the result further revealed the lack of internal controls, reliable information systems and an inappropriate attitude towards shareholder's funds. We retain our Sell/ Avoid rating.


Event
Last Update - 25/02/2003
We attended an analyst briefing for Aristocrat where we expected to find a company in damage control. How wrong we were! In response to questions about the way the company spends shareholder's money, inquirers were told to talk to the CEO's wife. What a joke!

As CEO, Des Randall is accountable for the way shareholder's funds are spent. He used family, travel and time pressures to justify the excesses revealed. He responded angrily and unjustifiably to reasonable questions. If you can't take the heat, get out of the company residence's kitchen?


Of course, if the CEO leaves then he will:


1. -Have to pay back the $2.6m loan at 3% interest supplied by ALL to buy a Las Vegas house;


2. -Not be able to enjoy the use of the $4.1m domestic residence in Sydney purchased during the year for visiting executives and directors;


3. -Forego his $3.3m remuneration package including a $1m bonus and $1.2m of other benefits including relocation expenses.

rgds

Ocker