The write offs and balance sheet shrinking continue.
They have sold CDC which was about a third of current earnings for $66M less than carrying value, it seems that CFN earnings must have plunged two thirds in 6 months which is remarkable. Another $22M loss there and then the taxi plates are now worth $8M less. $94M (a quarter of all assets) in write offs in just 6 months. And that's after $30M last year.
Worse - the earnings from taxi plates is now apparently only $5M where last year from my reading it was $23M.
Sure they have some cash from the sale of the bus group and may pay say 80c a share special dividend but that is basically the end of the company.
Its doubtful they will ever make a profit again. Even if they some how managed to survive the Uber onslaught, driverless taxis are only 3 years away according to many forecasters. Even if you call it 5, its very hard to see CAB existing for more than a handful of years.
I'd be happy to hear any opposing points of view but I'm happy with a long term short on this one.
CAB Price at posting:
$3.44 Sentiment: Sell Disclosure: Not Held
