Wow, R 1000 mil loss for an R 162 mil market cap company. Someone's going to pick up the pieces? Remember the tech company fallout after the .com bust? The JSE was riddled with little tech companies which dissappeared one after the other. I guess the Altx listed companies numbers are coming up.What's that Freddy Mercury toon again - Ah, yes - Another one bites the dust.
Well, that takes care of the equity base...ordinary shareholders' interest as per Aug'09 B/S - R885m. Full year loss less interim loss: R1,150m - R266m = R884m which leaves equity of R1m vs. market cap of R143m at 23cps. Anybody for an impromptu auction?
I recall attending a JSE roadshow last year where BFS presented. When I listened to their exposure to Africa, I was glad I removed BFS from my watchlist a few days before. The sheer naïvity in dealing with Africa was horrific. I've travelled and worked through Sub-Saharan Africa. Gauteng goochi goochi wow wow doesn't work there! PMB has a bigger economy than some of those countries. Surprised Blue lasted this long.
Never touched this share - prefer to stay well away from microlending businesses, but love conspiracy stories when i see them. Just went over their results last year. They had grown their loan book to just on R1bn. Now, if they have only lent out R1bn, and you have to expect that at least 50% of the creditors are good for it, their exposure should only be sitting at about R500m max? So how could they even contrive to lose such a staggaring amount? the only logical explanation would be some naughty naughty boy who decided to dabble in currency futures, or something?
what aboout good will right downs ?? thinking the Credit U deal they did ??
also an interest idea Stuart Theobald suggested to me, with these small micro lenders, rather then compare this years bad loans to book, compare this years bad loans to last years book .. otherwise book growth can hide bad debt levels ..
Maybe, but their entire goodwill impairment can account for R600m. So if they wrote off the lot, and made an additional R600m loss - then maybe. All in all, that equates to a catyclismic collapse, an inwards explosion the likes of which I don't think I have seen before. Might be interesting to watch the cat fight between ABSA, AIG, IFC for the R1bn loan book!, since that is about all that is left of value here