Where to ...supply base?, page-63

MRM is not a mistake, yet (? ), not until the bankers sing. And the bankers just agreed they won't sing for another 2 and a half years.

So let's hope for the best shall we.

You don't seem to have lost much on STO so far, me I lost a lot more. Though it's hard to say whether you're being lucky or me being unlucky in when we purchase. I mean, if I was on holiday over that couple weeks, I'd be able to buy STO for some $3.5 instead of jumping in at $6, then at $5, then at $4 something. But ey, I did managed to load up a few grands worth at $2.55.

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MRM's book value, from memory of its 2016AR, was about $1.1B. It had since written down another $250M or $450M at the H1 FY2017 report?

From 2016AR, total assets invested in PPE was around $1.5B; the write downs/impairments and depreciation brought it down to $1.1B... and I think its NTA is now some $1.70 per share, or around $600M?

Yes, it's all book and any idiot can write whatever number they want on it.

But MRM haven't been writing up its book value. They've done the exact opposite and wrote down some $500M non-cash impairment.

Are the figures still valid? Good question.

First, management claim that the "independent" consultant priced its assets as though they're all sold in today's market. True?

But we all know who pay consultants fees so let's ignore that.

However....

As stated above, the bases and slipways are valued by these consultants at some $78M?

That includes all four bases and slipways... let say the Asian ones are $30M [I'm just going by the landsize, ignoring the possibility of a higher value in small Singapore; ignoring the facilities and tools in the Asian yards that churn out vessels and outfitting them]...

So going by that simple assumption, the book would have Australian bases at $50M?

They sold it for $54M?

So what they wrote on the books might not be total bs. If anything, I think they might have overdone it... but it's apparently is legal and it does mean the ATO will be giving tax credits and paying back some taxes... not a bad move either.

So while it might be true that I'm spinning this to ease my pain. These are real figures I'm quoting right? I don't make these up.
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But as to selling the Australian bases... I did think that it'd be better if MRM did a cap raising to remove that hanging debt. Do that rather than selling its bases in OZ.

But thinking about it, and as expressed in previous postings... it might serve the current shareholders better if the bases here are sold off rather than a cap raising.

For one, it make the bankers happy.

Two, no need for four bases and two [?] slipways right? Not in the current environment.

Three, the price aren't what they'd go for during the good times... now ain't those good times.

Four, it possibly remove potential corporate raiders and competitors from getting in on MRM at bargain prices.

While that kinda go against my other dream of a quick takeover where I could realise a pretty decent gain at my entry price... I can see the reasoning if that were the case.


As to buying Jaya just before the collapse.... we've discussed this before.