Hey plonks,No expert, not accountant, but have some minor...

Hey plonks,

No expert, not accountant, but have some minor understanding ~ noted all this so u know i'm not qualified; however, ONE method of checking the financial stability of a co, is in the cashflow. Been told to note (amongst other factors) the trade receivables vs the trade payables.

In the case of fea's i/2 year to dec '08:

T. receiv's = $48.094m ( + the $9.65m cash in store)
T. pay's = $29.588m. Plenty there to pay immediate debts as due, imo. dyor however.

Obviously there is a mix of other costs and receipts, incl the payments of:
$10m in divi's + $10m off borrowing + $11.6m in tax for previous yr.

But the cash-flow, imo, appears to be ok. Need to see this 1/2 year (i.e. full yr) result to see if the pattern is on the improve ~ i'm also waiting to see, and ready to pounce if favourable!
There's a couple of key values i'll be checking.
(Note that i have qualified my position at beginning of this note).
Trust this helps appreciate the position i've taken, right or wrong.

Cheers :)