nta, page-2

The problem with published NTA numbers is that they don't always reflect the realisable value of the business' assets.

A case in point were the Rubicon Property Trusts (RAT, REU and another one) which all had published NTAs above $1.00, but all went bankrupt without so much as a red cent to equity holders.

The assets are only worth whatever future cashflows they can generate, discounted back to present value, or what someone else is willing to pay for them.

Namoi is a concern because although they still have hard assets, we do not know the possibility or extent for further liabilities to arise from their futures and derivatives book - which could wipe out the equity. If I were playing devil's advocate, I'd be question why they are looking to joint venture their trading operations.

Xavier.