Ann: Profit Announcement , page-20

Acaca

At first glance, debt levels do appear high ( and increasing ) . On balance sheet , gearing does look like is getting up there.

However there is a lot more value in the property than what balance sheet shows. Note 13 of annual report shows FMV of $53m for freehold vs book value of $10m or so. They have owned these for years ( 80s' ) . DEBT to EBITDA is still under 3x so no issues.

DRP was underwritten in order to get liquidity - you know how thin this stock is - perfectly reasonable.

Director selling - yep , however still holds a heap ( directors as a group actually hold around 65% of this thing )

Rapidly slowing WA economy - it is slowing, but these guys have ridden the WA cycles since the 1970's.

It has come off a bit lately, but can also go up just as quick. Typical low liquid stock, although it has improved in recent times. I know 18 months or so ago it would have taken me a few weeks to sell my holding, and I am not in the top twenty.

Curious as to how this came up on a short list ?

Baraka