great southern owns woodlots, page-6

re: great southern owns woodlots (zwu)
Forum: ASX - By Stock (Back)
Code: GTP - GREAT SOUTHERN LIMITED ( 12c | Price Chart | Announcements | Google GTP)
Post: 4847385
Reply to: #4833398 from wooduk Views: 62
Posted: 14/12/09 01:07 Stock Price (at time of posting): 12c Sentiment: None Disclosure: No Stock Held From: 114.76.xxx.xxx

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Just back from a long trip and feel again the heat of the debate.

One problem of voting for Gunns is that it may NOT survive long if its pulp mill project goes under.

1. GNS is a quasi MIS company with ~50% of PBIT from MIS just a couple years ago. Although the new MIS projects diminishes in recent years, it is still bearing a large burden of the old MIS (Ponzi!) projects in terms of maintenance, managing, paying rents, prying interests on mortgages of the project lands, etc... causing its profit to slump.

2. By 30/6/2009, GNS had capitalised $149.7m "Bell Bay" pulp mill costs in its balance sheet (see page 102, GNS 2009 report). This amount is nearly 3 times of its 2009 profit, and it will go if the mill fails.

3. Last week the CEO John Gay sold ~45% of his direct share holdings on market for $3.1m.

So what would happen next?

ZWU---it is like deja-vu,especially like a former MD of GTP- Young