In the lead up to the announcement I really thought that we were...

In the lead up to the announcement I really thought that we were going to get a decisive lead one way or the other. Either they got the deposit (share price up) or the deal was off (share price down). Instead we got a bit of both (share price neutral).

The good side is:
- The deal is still on
- $2m deposit is still real money so they are serious
-$4.3m in the bank after paying $1m in bank debt so they are probably safe with the loan conditions for 31 December 2012
- Another $1m tomorrow (you presume they are confident if they announced it today)
- Underlying profitability improving with EPS going forward of about 4c

The bad news is:
- Deal stumbled at the first hurdle
- If they are struggling to make $4m deposit how are they going to go with 10X the amount
- No details on the capital management to go with the deal
- No details on the potential tax implications

I got no idea what to make of it.

So much for the Week of Truth !