whats gonna happen to brt, page-6

Thanx for the good luck wishes.

There are now a lot of very nervous shareholders in BRT.

Negotiating at the last minute, like BRT management are currently doing, gives them very little to no bargaining power now, meaning whatever gets worked out it isn't going to be as good a deal as if these issues were dealt with months ago.

While the banking sector has tightened the loaning of funds to everyone, there is still money out there. One of my mates who is a merchant banker, who has just sealed a $500mill+ deal and will make $25mill out of it, has said that money is available to companies that can prove they will pay back the cash. The cost of the cash is fairly high though. We need to know why nobody wants to give BRT the money. Obviously quite a few finance companies have had an opportunity to look through BRT's books now, and one would think they aren't overly rosy. BRT have been looking for cash for 6 months now. I believe if they had actually given an earnings forecast and given more regular updates to the market they would have a higher share price and more likelihood of getting cash. It is hard for a company with a market cap of $1mill to get a $4mill loan when they already have $1.5mill in debts. Discussing acquisitions in the past few months was also stupid when they can't even pay for their current acquisitions.

I hope they sort this mess out, even though it is quite obvious it has done a huge amount of damage to the reputation of the company and management, and its share price as well as the wealth of its shareholders. There is little doubt the BRT staff have been working tirelessly, however maybe a fair degree of inexperience and naivety is ultimately going to sink the ship. I hope not.