recs, page-7

Hi finch.
".I can see they have used $8.2mill of REC's to obtain finance of $7mill ie 85%"

What they did not tell is us how many of these RECs with notional value of $40 and book value of $36 they have used to obtain the loan of $7 million.

CBD is quickly becoming a master on giving meaningless information -when they bother to give any information at all- and pulling wool over investors eyes.

I do not need them to tell me that 85% of 8.2 is 7, it is not, you know, they can can not even do the arithmetics correctly, but it is close enough.

I would be interested in knowing what is realistic market price ATM, how many they have pledged as collateral and how many they got left. They told us that:
"At 31 December 2011 the Company held $3.8million of RECS outside of the financing facility which had not been converted to cash at that time."
Was is before, in between, or after they borrowed $7 million? Muddy waters.
And
"The Company has current assets of $54 million against current liabilities of $35 million."
That means NTA = $21 million. Given that market capitalization is $37.8 million and company is consistently showing losses from operations in their accounts, it is a miracle that the SP is where it is.