Sorry guys, warning bells now going off for me all over the place.
"Westinghouse last night announced revenues of $US11 million, an operating profit of $1 million, and a net loss of $US4.5 million for the 2012 calendar year last night."
The Westinghouse purchase in the first instance had me scratching my head. Now I am just lost with my thoughts on CBD.
The figures above are a worry, I am getting s sense of NMS and Isoft all over again. Overzealous CEO's using the companies thinly capitalised balance sheet to continue to make acquisition after acquisition which really just masks the revenue situation by showing increased earnings, however EBIT becomes compromised as the debt bill grows and the business struggles to bed down its purchases and demonstrate synergies to shareholders.
The Austchina thing smells....it was my main draw card to CBD and Gerry is happy to make ASX announcements about MOU's but when no income appears in time, we are left to die on the vine....with no update or announcement to the ASX.
My summary with this latest move is what seems to be the desperate shuffles of 2 companies struggling to create sustainable revenue in an industry that is clearly consolidating as it realises that perhaps, the only sustainable energy alternative to fossil fuels is Uranium.
Kiril
CBD Price at posting:
7.7¢ Sentiment: None Disclosure: Not Held
