understanding vdm group

Hi Guys,

I have recently bought into VDM Group and would like to know thoughts on recent share price weakness.

I believe that there two issues that could be causing share price weakness. They are Low Net Asset Value and rapid Merger & Acquisition activity.

Net asset position is about $31 Million. Debt $82 Million, assets $113 Million (excluding contracts in progress and Trade & other receivables). With 121 Million shares this would leave a liquidation value per share of 25.6 cents ($31M divide by 121 Million shares).
Figures are from 2008 annual report and debt figure is quoted in e-trade (think it is more current to include recent statements).

Also, as the company has embarked on a major acquisition strategy there may be some issues around integration. This is a typical occurence when growing and occurred with Coffey International before they stepped into more mature business model.

There is also a weird figure appearing on the Income Statement. Administration Expenses have increased from $28.3M to $59.9M. Appears that there are some benefits yet to be realised from acquisitions.

Anyhow appreciate thoughts.

Best of Luck
Lost