If there are people out there who want to keep buying... good luck.
I'm amazed by the assumptions some people are making re this company.
Couple of unanswered questions:
1. Radbone announced less than 3 weeks ago (20/05/2010) that profit was up. Either he was mislead by his CFO (Corbin), he had nothing from his CFO, or the statement wasn't appropriate.
2. Corbin is now incharge....
3. When did the CEO first become aware of the situation - refer to the massive share price decline prior to the announcement, including May.
4. There is no real substance in the announcement as to WHY there is now a massive problem - bad debts would be a start from struggling franchisees.
5. The 09 financials show Westpac being owed about $9m. Does anyone actually think those at the bank with name against this loan isn't going to take action to protect whatever is left? Sure.
6. The cash injections from the USA - hardly going to continue.
7. Have the breach clauses in the Baskins Master Agreement with the US parent been triggered or are they close to being triggered?
8. I've read silly comments from people here thinking they might get a dividend. From where - you need profits to pay dividends and cash too (read point 6).
Going to be interesting to see what happens from here.
Poor franchisees will suffer the most.
ABQ Price at posting:
54.0¢ Sentiment: None Disclosure: Not Held
