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Blue about to blow ??

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striker
Super Contributor
I noticed trading has been suspended,whilst they finalise their numbers.Could this one become a casualty ???
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25 REPLIES 25
SimonPB
Valued Contributor
errr .. haven't they already blown ??
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striker
Super Contributor
Yes ,but officially.
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SimonPB
Valued Contributor
an trading open again .. the gonna lose over R1billion .. yip that's a B ??
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Picky
Regular Contributor
hmm, could their software programs be supplied by Faritec?
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striker
Super Contributor
Staggering number for their size ! Cannot see them surviving .
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SimonPB
Valued Contributor
surely a record loss for an AltX company ??
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kwagga
Super Contributor
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.
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striker
Super Contributor
Is Dave van niekerk still CEO and if so will he get the bullet ?
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topgun
Super Contributor
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?
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kwagga
Super Contributor
What's on sale - Stuffed head of Dave van Niekerk with wall mounting ?
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HateGauteng
Super Contributor
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.
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Not applicable
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?
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SimonPB
Valued Contributor
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 ..
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Not applicable
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
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topgun
Super Contributor
There was a company called Macmed, many years ago...and this implosion certainly dwarfs that of FRT.
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striker
Super Contributor
Absa's been having a bad run with their lending to all these small ALTx coy's.Pinnacle Point was another bail out scenario, but in comparison that was peanuts compared to this monster.
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GarethJ
Regular Contributor
They also have a fairly widespread Branch network throughout SA (and Africa) which may be of interest to buyers trying to penetrate these markets..
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SimonPB
Valued Contributor
they got these holdings by SSF default via cortex ..
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Wizard
Super Contributor
Stupid question: How is it possible to have a such a huge loss? The turnover is 400m for 09' If that is the same for this year....where do the expenses of 1400m come from to get to 1000m loss?
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