aoltimewarner profit rises on matrix reloaded!!!, page-8

re: ** aoltimewarner profit rises on matrix reload Sabre:

I originally bought and sold VRL based upon the same analysis that you talk about in your post. I even made a few bucks on it UNTIL they cut the dividend on the common. I sold the last of my common during the last run up and now only hold the prefs (at a loss).

I agree that VRL is an asset rich company, however, the offset to that is the management.

IMO the management of VRL is the worst of the worst.
IMO they are about the greediest, anti-shareholder (read minority) friendly bunch of people (The Village People - the Kirbys and G. Burke) running a company in Australia today.

I'll just give you a couple very good examples of how they jrun the company.

The recent cut of the preference dividend was based mainly upon the SARS epidemic and the impact on the income of the the cinemas. The BOD decided (The Village People) that the SARS epidemic was a long term negative and immediately were going to write-off just enough value to put the company in the red.

Well a little time has passed and SARS was a short one-time event. Long term impact? Probably none.

Do we hear anything about NOT taking those write-offs? ZIP! A non-event.

You will also see the huge cash flow (not earnings) be the base and reason for huge bonuses to the Village People while the shareholders get zero dividends. Another $25 million or so to the Village People and friends.

You should also keep a record of all the foolish sayings by G. Burke about the preference shares and also running the company.

IMO the Village People want to destroy the value of these preference shares and have done very well, thank you. Eliminating the dividend, buying more than 50% of the common to nullify the conversion rights, etc.

IMO the long term goal of the Village People is to drive the preference shares so low that they can buy them back for peanuts and eliminate them as a threat to taking over the company.

The continual deferral of bringing the profits from the movie package with Warner to the accounts makes it look like the company is losing money when in fact the package might generate huge profits in four or five years. By that time, if all goes according to plan, the public shareholders will have been eliminated and then the Village People will be able to reap the huge rewards all by themselves.

Just by eliminating the preference dividends it adds to the growing amount of cash that the company can accumulate on its books for the future. And surprise surprise it works out to about the same amount as the Village People pay themselves per year!!!!!!!!!!!!!

As far as Austereo is concerned, yes they own a good % of it and those that bought into the company are also underwater. Funny how that AEO always pays a good % of their income as dividends (Which go to VRL as income and franking credits).

It is being used as a cash cow. If and when they can sell it, IMO it will probably go and the funds used by the Village People to buy out the public shareholders of VRL with their own money!!

So as far as I am concerned, I don't trust the Village People. If you want to put your hard earned money with a group of people that have track record like they do, you are more than welcome.

I won't.