CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

RE:RE:earnings

[Kherson]

Kherson wrote:

leo101 wrote: i defy anyone to read the earnings report and come away with a clear picture of what's going on.  years ago earnings reports gave investors information on what happened but now most companies put out all sorts of numbers that hide the true information. after all sorts of boasting about cash operating profits etc, they show a net loss of $148 million at the very end of the release.

maybe kherson is smart enough to figure it out, but i'm not.

 

Leo, Canexus has a history of issuing very confusing financials and Q2's are no exception. What one has to realize is that the Q2 loss was really over $200 million, but they factored in an income tax recovery to drop it to $148 million!
As a shareholder, one should be concerned that the actual amount of distributable cash was negative $15.909 million, yet they still paid a dividend, therefore both of those monies were borrowed to the tune of $38.3 million!
The actual loss per share was 80 cents for Q2 and now more important than anything else for potential shareholders is the fact that the book value is 11 cents per share! If you don't believe that revelation, take a look at page 16 of the MD&A for Q2. The funny thing is that you won't find the MD&A on their website!
Kherson