This announcement is a god send for Bell's who arranged the float and have supported the SP since. They can get every one of their clients out back at the price they paid before the ship sinks.
I spent some time reading the annual report on Sunday, these guys are in real trouble.
Less than 1 years cash burn in cash, Bouris takes an annual $750K consultancy fee. The business writen is no where near meeting their cost base, with the business needing to raise more capital. Channel 9 bought in and Bouris' brother Adrian took a 3.5% fee for arranging the introduction, some half a million dollars. That is criminal....if I was a shareholder I would be outraged.
Time to call Bell's again and open a short.
If you are foolish enough to buy into this smoke and mirrors you deserve to do your cash. Read the report....they have $5m debt that was used to seed the Financial planning and iinsurance book.....red flags everywhere I look.
Fifth pillar...really? Simply Macquarie agreeing to white label their securitised debt....any broker could get you a better deal on the honey moon rate and the 1 yr reversion.
Kiril.
YBR Price at posting:
39.5¢ Sentiment: None Disclosure: Not Held
