opportunity play the game, page-28

Reaper11

IMHO the Debt to Equity Ratio is more important - CommSec lists it as 92.6% for ABS [ASX is about ~35%] but that has not been changed to take account of the latest MS deal. The D/E ratio quoted by ABS in their recent explanatory presentation of ~45% is calculated differently from the way presented in most annual report data.

Market Cap is determined by the SP & number of shares on issue but is most important because companies sometimes secure finance on the basis of their market cap. Unless I've missed a notice somewhere ABS has repeatedly re-assured us that this is not a problem. Eddie has responded to market pressures on the SP by reducing debt but some SH's [including me] would have preferred that he had not sold 60% of the stake ABS had in the US to do it - that action appears to have just spooked the market.

I currently hold my deflated ABS shares as a long term SMSF investment due to its earning capacity. I would already have sold if I thought its survival was at issue but there are no guarantees!.

4YIO - NFA