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AJX - ALEXIUM INTERNATIONAL GROUP LIMITED


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Yeah certainly got a good name for itself and as such you wouldn't think all would go to waste. Somebody may be stepping in at these prices for a takeover??? who knows.

 

Xanadu, which has presumably been the imputus to this latest down grading bounced back today in a big fashion up 62.5% for those ballsy enough to have jumped onboard overnight.

 

ETW has had this debt for the past two years and it has only come to the spotlight since with the rising dollar and an oversupply of grapes... two things the management may have predicted better but they have tried, cutting back production by 9000 tonnes is evidence that they ain't drunk all the time http://www.sharescene.com/html/emoticons/tongue.gif

 

If ANZ is still happy as Franklin said then they should be ok if they can straighten the ship with 333!!

 

With very little sell depth upto 40c it could quickly regain some of this lost ground.

 

p/e currently 3-4 depending on wheter or not they meet $90M revenue and maintain a healthly profit margin but compared to others looks like it has been oversold.

 

Considering.

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Hate to be all doom & gloom, but a couple of interesting points:

 

Inventory Write down $8-10 million

"Sales of unallocated inventory are expected to be in the order of $8 Million. The Board expects these sales to result in a once off write-down of $8-$10 million in the current financial year."

 

Does this mean that the inventory was valued at somewhere between 100-125% of what is could actually be sold for?

It makes one wonder on what basis the balance of the stock is valued?

 

"However, given the current difficult market environment and the Company's need to reduce debt, the Baord has today decided to begin to reduce some inventory immediately"

 

I assume this is the expect $8m sale of unallocated inventory?

It certainly won't reduce debt. It won't even cover the $8.5 million in short-term working capital they hope the ANZ will provide.

 

Agree with Clarebatt here - still paying a dividend???

Trying to buy off the shareholders given that the don't seem to be able to meet their $2.5million interest payment & are borrowing for working capital!

 

IMO one for the very brave and/or foolish!

 

Cheers

Dr_Dazmo

 

 

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Yeah certainly not doom and cloom as portrayed in the media.

 

Looks very cheap at current levels, particularly etwpb.

 

Revenue's not the problem as it has increased 12%, they obviously just need to reduce the inventory they are never going to sell 8-10M and writeoff some goodwill they shouldn't be carrying?? All in all doesn't look like the brand is in any difficulty and if it can survive these testing times then they will be better for it in the future.

 

Have to see how Mr Market. reacts today but all in imho very cheap at 30c but of course very risky. ANZ being happy for a short term loan in the immediate future a very good sign they remain confident in the company and its future.

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THE KING says Saved by the Bell all is well we will trade out the bump,, as to Div`s this is a must it will support the s/price in gloom so its a must be biz as norm,, but dont worry the money is there and lots of it, only its in the form of loverley WINE.. http://www.sharescene.com/html/emoticons/king.gif
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In reply to: dr_dazmo on Wednesday 29/06/05 09:47am

I would only touch the ETWG.

They rank ahead of all shares and have a face value of 1.00.(which is why they held up relatively well in the recent rout)

Company assets appear to be enough to cover creditors and ETWG in the event of a liquidation sale(if things deteriorate further down the track).

 

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Of course it's always a possibility that the ANZ will make the short-term working capital conditional on non payment of the dividend on ordinary shares.

 

Given that they are deferring interest of $2.5m & advancing $8.5m, it is very generous of the ANZ to allow payment of the dividend on the basis of F06 budgets which may or may not be achieved.

 

Anyone know of another company where the bank have been so generous to shareholders?

 

Dr_Dazmo

 

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THE KING says NO worries Doc as ETW would not have said and told the world what was going to happen without first OK in it with the ANZ if you owe a $100 million you call the bank manager, SIR.. http://www.sharescene.com/html/emoticons/king.gif
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Of course ANZ could make the $8.5m conditional on non-payment of divs. If you read the release properly King you will see that ANZ hasnt even approved the funds, only deferment of $2.5m interest payment.The working capital will only be approved after 333 PM makes its full report.

 

Im more concerned that Tate categorically denied any connection to KordaMentha, then admitted that 333 performance management had been engaged. Also, Tate denied that ANZ were concerned about debt levels, then todays ann. says that ANZ is awaiting the 333 PM review. Yeah, sure ANZ aren't worried thats why there waiting on reports from an insolvency specialist.

 

Tate has not been honest with market at all

 

regards

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