worth review for investment, page-5

Zman thanks. Have a basic understanding of the concept of revaluation and reserves etc.

Do you appreciate my question though about reliance ave places upon revaluation in terms of achieving profit. Am assuming its revaluations of investment properties.

My point is that if the profit is leveraged to rising land values, things could get really ugly if land values fall - i.e on current revenue/expense ratio for operations then if land values fall the company would be heading bust right?

By way of example for half year accounts (31 Dec 07), operating revenue is $11,286 mill, operating expenses are far higher than revenue at $14,536, and profit is only achieved in recognition of revaluation as revenue in amt of $15,103. Unless realised however this is simply accounting profit - not contributing to cashflow??

Cashflow statement shows positive operating cashflow however this seems to be as a result of the shuffling of resident loans and bonds by with intake higher than outake.

Maybe i dont appreciate the business model properly however it seems risky to me?

That was my point and happy to be shown otherwise.