Hi guys,
Yes share price should be less than $1 that is exactly what I am saying and I am writing this to provide you with a sensibility check for a company whose accounts appear very unhealthy:
Well where to begin.... let us start with your comment "... you need to read a little more carefully."
Ok @
Inductor yes in 2011 they did another bad acquisition for 31 million.
-
2015 Annual Report - page 46 - Cashflow Statement - Cash flows from investing activities
- Acquisition of a Subsidiary = 43,272,000
- Now the super news is it generates 800,000 profit every 3 months or 3.2mil per annum.
- So in about 14 years you get to pay that one off. Bad investment for shareholders
- Go to page 75 or Note 14. You can find all the details there.
- Best news ever is investors paid
2.246 million in acquisition costs of a subsidiary..... ???
- Dividend - ok so total dividend payment last year was 12,860,000 / 19,000,000 = payout ratio of 67%...
Yes potentially possible.... but.....
- There is another 26 million of goodwill that needs to be written off.
- Does not include any write down of accounts receivable ..... how does this company not get away with any impairments even real banks have write downs on home loans....
@
keygeo Investors Mutual have more experience..... ok - let us look at the facts !!!! - just go to their website and look at fund performance taken from March 2016 published results:
- Investors Mutual Share Fund 1 year return = -9.3% = salty
- Equity Income Fund 1 year return = -9.3% = more salty
Please be aware funds operate with
strict stop loss rules. I would be extremely surprised if they have not hit their stop loss limits.
Be careful that the fund does not selling out. Stop losses are usually at 10% and 20% not at 30% where they are currently down.
Not only did I read all of their annual reports, announcements I also built it into an easy to read template.
There is nothing CHEAP here they have not started to do the write downs that they need to.
They just wiped out one of their 4 business units....
I really recommend that you guys read their financials it is actually really good advice that you gave me.
Cheers,
Super Ninja
