risk to reward, page-4

Hi guys,

I dont hold however doing my regular search of company announcements today I noted that the distribution for year end had been cancelled, understandably.

The I went throught the financial reports and noted that the group had been in breach of a convenant, action had not been taken by the bank, which IMO denotes a degree of confidence in the business model of the CO.

If this group can survive the next 6 months, it's cash levels suggest it can, perhaps a sale may be on the cards, then I think it may be subject to a re-rating.

If the group can focus on consolidation, it may be ok. Having a look at their portfolio I noticed a fair degree of their assets are in the middle to lower class areas of Perth, this may or may not be beneficial, punters hittin the grog after getting the axe, or choosing to save their cash and eat in.

The one shining light they do have is the Brighton. Cash Cow right on the estuary in Mandurah.

Glad to see they got out of Cobbler's a little dump that place.