summary for the week - please reply, page-14

Bad news Karasco

You have not calculated effect decline in asset prices.
Your calculation ...
Assume a further decline in values of the assets in Australia/Asia by say 10-15% and US & UK by a further 20-25%

The NTA of each (I have used 20% discount)

REvised NTA

GMG from $1.05 to 0.84cpu sp= 0.26c a discount of 70%
GPT from $1.43 to $1.14cpu sp=0.47c a discount of 58%
IIF from $1.66 to $1.33cpu sp=0.083c a discount of 93%
.........
You apply the decline in asset to the NTA.
You need to apply to gross, and then deduct loan to calculate new NTA.
If LVR is 60% and assets decline 20% then NTA decline is 50%
Eg Approx NTA's based on 60% LVR would be about
GMG 53c
GPT 72c
IIF 83c

regards