I haven't managed to get my hands on a Gage document yet.
I don't like the look of the SIT accounts for a few reasons:
1. It's got "Sterling" in its name - tarnishes by association.
2. Related Party loans have been written down by 40% - if you lose on a related party loan, you're related to the wrong people!
3. The Related Party Note spans 3 pages - related party stuff is toxic when you're dealing with Other People's Money.
4. The auditors refuse to accept the carrying value on another 2/3rds of the assets in the balance sheet
It's now a month since the last update. Re-reading carefully, that update claims that the FY 17 audit for the "management services operations" has been completed. That doesn't necessarily mean the FY17 audit for Sterling First has been completed.
Or that the $3.34m profit is Sterling's result. Is the $3.34m management services profit offset against a multimillion dollar impairment expense as well?
Clever use of words.
BDO to do the FY18 audit "expeditiously". Exactly how fast is "expeditiously"? And will BDO have the same problems valuing the management rights at the SIT auditors?
Human nature is that if you've got good news, you share it pretty willingly and pretty quickly. And if the news is not so good, the opposite occurs.
It's so obvious now that the opposite is occurring. What a shame.
