GREY:AIIFF - Post by User
Post by
mingzhuon Nov 24, 2014 10:18am
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Post# 23157782
why Brookfield will keep the golden goose alive
why Brookfield will keep the golden goose alive
In very low interest environment, Brookfield get money easily to lend it to ARF. Even though ARF has 17 million of liabilities more than assets, it become less than last year of 20 m. In 2011, impairment written off is 286 m mainly from goodwill. Companies do these mainly for sake of tax. Goodwill does exist for ARF as it has long history and it is in infrastructure business, not like Nortel, if you are out of fashion, you are dead for good. So in reality, ARF is not insolvent. Look at the trend of past five years shown in ScociaBank report, after the dramatic fall in 2010, 2015 will be for the first time the year with net earning (0.17-0.23 pe.) So 2015 would be the turning point for the company. Of course, if we have another year like 2014, the share be 0.05 to 0.10 range. Another time like this , ARF will be dead for good. That is two years away. Look at the past