On May 7, 11:59 pm, kangarooistan <perama...@[EMAIL PROTECTED]
> wrote:
> By Michael Byrnes
>
> SYDNEY (Reuters) - Shares in Australia's AACo (AAC.AX: Quote, Profile,
> Research), the world's biggest cattle firm, slumped as much as 14
> percent on Wednesday after Futuris Corp Ltd (FCL.AX: Quote, Profile,
> Research) ditched plans to sell its 43 percent AACo stake.
>
> Shares in Futuris, a rural conglomerate with interests ranging from
> farm products to property and auto parts, dropped more than 11
> percent.
>
> Analysts said shares in both companies were hit because the decision
> took AACo out of play as a possible takeover target, while Futuris had
> failed to deliver on a promised sale which would have been used to pay
> down debt.
>
> Analysts said Futuris had failed to attract a good price for its AACo
> stake despite strong inherent value in the cattle company.
>
> In a statement, Futuris said none of the proposals it received had any
> certainty of execution or timing. It also said that market recognition
> of the value of food production had increased significantly since the
> sale was mooted.
>
> Chief Executive Les Wozniczka said in a teleconference that financial
> market turbulence since it put the stake up for sale in October, and
> risks tied to a protracted sale process, had led to a decision to
> "bring matters to a head".
>
> "It's a good company," he said of AACo, but also described it as "land
> rich, cash poor", with an enterprise value well over A$1 billion. Net
> debt of A$500 million in Futuris produced a conservative gearing of 25
> percent, he said.
>
> http://in.reuters.com/article/hotStocksNews/idINSYD30715620080507
>
> ===============================================================
>
> AACO sounds and looks good , to uneducated onlookers
>
> but ask if it really owns 27 cattle properties or simply uses /
> controls 27 cattle properties
>
> and then examie them carefully , who did the valuation , and who's
> figures on production did they use to do their valuation , and did
> they count the cattle , or even visit the property
>
> Then ask why so few cattle seem to be sold each year , when on the
> books they claim 600,000 head of cattle , but sales seem to indicate a
> very very very much smaller number of cattle is more likely
>
> then ask them to yard every one of their cattle so you can visually
> see and count any individual mob to do a test of their stock numbers
> on a random basis at a set time , like a spot check
>
> my research indicate they do not have 600,000 cattle , hence the
> valuations are worthless
>
> it is this "number" that is used to value the company and its
> performance and its assets
>
> we all know we can not trust an accountant in a big accounting firm ,
> who would not know what a live cow looked like , we know how elastic
> figure can be
>
..
..
> do your homework on this one , I have seen this before , ever
> increasing cattle numbers can hide a scam , its cattle sales that are
> more reliable , but even those can for scammed
>
> kanga
> ====
>
> http://www.aaco.com.au/default.aspx
indeed , do a spot check of declared cattle numbers before you invest
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