Mindreader, you skillfully avoid my argument. The question I am...

Mindreader,
you skillfully avoid my argument. The question I am asking what is a reasonable valuation of Htc considering the co's ability to generate
profit and cashflow to maintain and grow the business, you give an indepth discussion of the accounting mechanics behind the figures that Htc choose to present in a scenario highly reminiscent
of the Enron and the Dot com's. The issue with the Enron's and the dot-coms was not the accounting mechanics but the economic
basis of the valuations of those businesses.

Why raise the issue of Raptors? Are you trying to highlight your technical accounting knowledge while trying to disguise
the fundamental shortcomings of the Htc business model.

Htc has a market capitalisation of $25 million yet on its balance sheet it's biggest asset per the balance sheet is 'goodwill'
for businesses that to date are losing money. As you eloquently demonstrate its easy to come up with any accounting figure which
people like you use to justify a valuation for the company. Just out of interest how much money did Annitel lose in the 12 months
before it was acquired by Htc? Why pay a premium for an asset that is losing money?!!!

I find it interesting that you dismiss PK's "demand" for preferential treatment, he was the only vendor
demanding such treatment of all the businesses that Htc has acquired.

It's ironic that you give yourself an escape by highlighting the fact the accounts are only a proforma set of accounts and actual accounts months later. If your argument about Htc's published accounts being so robust why do you make this statement? On what basis would HTc's accounts need to be "modified"? The material factor would be the inability to justify "goodwill" for assets that are under increasing competitive and economic pressures which according to your idealogy suddenly start generating "profits" (and cash?) out of thin air.

You chose to use the EBIDTA measure for one month as proof that the business is robust, June is the end of financial year in which is usually the busiest month in terms
of recording deals. What about the other 11 months? what about all the expenses that you choose to exclude from your analysis by choosing EBTITA. There seems to be a growing perception that the economy is slowing down (an example being in yesterdays AFR about auditors having to cut audit fees for customers because of the 'slowdown'), with the slow period associated with the begining of the new financial year and a slowing economic trend then surely Htc would be reverting back to trend ie losing money on a
EBITA basis not to mention on a more practical definition of profit like bottom line profitability.