2242749 Ont Ltd. AIIFF

RE:RE:why Brookfield will keep the golden goose alive

[mingzhu]

Here is the definition of insolvency:
"a business can have negative net assets showing on its balance sheet, making it balance-sheet insolvent, but still be cash-flow solvent if ongoing revenue is able to meet debt obligations, and thus avoid default: for instance, if it holds long term debt. Some large companies operate permanently in this state."

ARF has more liabilities than assets mainly because of writtenoff Goodwill. What is called Goodwill is people trust you and give you business. It can be shown in ARF yearly revenue:


Scotiabank numbers:
Revenues (M)
2009 $464
2010$463
2011$454
2012$457
2013 $456
2014 $468
2015estimate$514

people may notice revenue are relatively unchanged, but ARF made 2 dollar net income in 2009 with net value of $14 ps and lost lot of money in the rest of years. The only changed is net margin. in 2009 is 19% and 2014, 10%. That means ARF does have goodwill but no efficency in running business.

in 2015, the estimated revenue is even bigger than in 2009 when the stock price was in $20s. So i have great hope for 2015. I do not expect the management suddently become highly intelligent. i just expect the mediocrity and common sense, thta is enough to turn a company around. How can a compnay have 514 million revenue but market cap is only 7 million(1.3% of revenue)? That must be record!!!