2242749 Ont Ltd. AIIFF

why Brookfield will keep the golden goose alive

[mingzhu]

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

[2Greying]

Brookfield may have other ideas...just speculating. Sorry to burst your bubble but Armtec is insolvent. 2015 will be a turning point...hopefully they develop a plan to restructure otherwise no hope from what I can see.

[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

[2Greying]

DEFINITION of 'Accounting Insolvency' A situation where the value of a company's liabilities exceeds its assets. Accounting insolvency looks only at the firm's balance sheet, deeming a company "insolvent on the books" when its net worth appears negative. Yes Armtec is insolvent. Where did you obtain the $514 million revenue estimate for 2015? Based on existing revenues

[mingzhu]

If you are customer of I-trade of Scocia Bank, you can acces the ScotiaBank Global Banking and Markets Company Edge Reports i copied here highlight with red color. Financial Analysis December-31 2009A 2010A 2011A 2012A 2013A 2014E 2015E 09-13 13-15 Average Growth Per-Share Data (FD) Cash Flow $3.10 $1.30 $0.54 $0.33 $0.53 $0.03 $0.79 22.0% Dividends $2.16 $2.16 $0.40 $0.00 $0