tulasi74

****OPINION FOUND ON http://www.aussiestockforums.com/forums/forumdisplay.php?f=16******

****NOT MY OPINION OR TEXT***

Just thought I'd post it here for others to see.

I have just joined the forum but I have been following Centro since it crashed last December. There was an earlier post that asked what has changed since the stock was trading at $10.00. I had a quick look at their last financial report for 6 months ending 30 December 2007 when they reported a 1.1 billion loss. The scary thing was that asset write downs only totalled 1.05 billion which means Centro potentially made a loss of 50 million for the 6 months. They state that net tangible assets per share is $1.35 (total assets (less intangibles) - liabilities divided by number of shares on issue) but if their asset values go down then there is no net tangible assets for share holders. However, the net tangible asset is after they already wrote down 1billion so hopefully there will not be much more writedowns required. There has been reports on AFR that stating that Centro may have paid 70% too much for the New Plan Realty acquisition which really questions what the true value of their assets are. If the cost of their debt exceeds their revenues they are not a profitable entity either. Thankfully its not in the best interest of banks to pull the rug from under Centro so hopefully the extension will be granted. The other thing to watch out for is cost of litigation. It wont take much for Centro to go from a profitable entity to an insolvent one. Sorry to post such a negative post but this is the reality facing Centro shareholders.

****OPINION FOUND ON http://www.aussiestockforums.com/forums/forumdisplay.php?f=16******

****NOT MY OPINION OR TEXT***