Good result, page-7

Yeah I looked this up after posting and realised that the interim doesn't need to audited and a review is ok. My bad but I have learnt something now which is good.

My view on this stock still stands. If you are satisfied with the reporting and prospects, as I said....good luck.

I did notice another interesting statement related to inter segment sales. These are sales they make to internal segments of the business. Obviously these sort of sales can be highly questionable and there have been plenty of cases of these being used to inflate sales. I am not suggesting that this is the case here because I believe the consolidated sales figures have these inter segment figures removed but the interesting line is below

"These operating segments are based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. There is no aggregation of operating segments."

"Segment assets and liabilities are not reviewed by the CODM on a regular basis"

This is basically saying that they can book sales to other segments who who may not actually sell the goods, instead they sit on their books as inventory/assets but the CODM wouldn't know this because they don't regularly review the assets and liabilities of these segments. Looking at the segments, ANZ sold more in inter segment sales than the the other segments made to external customers so you have to assume that the other segments are building up inventory. I'm still not sure exactly what this means because the expenses aren't broken down into segments making it hard to understand what is happening.

Anyway...why would this line about CODM not reviewing the segment assets and liabilities even be in the report? It just sort of sticks out by itself as though it is absolving the BOD's of some sort of blame. And in any case what sort of corporate governance system is in place when the board don't oversee on a regular basis these related party transactions.

On further thought, there just isn't enough information in this announcement to be sure that they are completely dodgy. We need to wait for the full year report, which legally must be audited and which will have another 6 months of external and inter segment sales.

In the meantime, please bid this thing up so that it is an even more attractive stock to short.

PS Pro forma profit up by 47% the other day and 43T shares traded today. Complete indifference by the market. That says more than anything I could write.