At a minimum we need a $430M - $590M write off to restate those "assets" to market value on the balance sheet.
And there are probably more charge offs needed. How many rocket scientists does it take to figure out that if you have $298M on your books for recent real property acquisitions, what are the odds that the value of the property is worth considerably less than acquisition and depreciation value?
Management clearly does not want to face its own reality. What are they waiting for? It will have to come in 2012 earnings, where oh by the way, management is forecasting a profit. How much profit can you make after you write off $4 - $7 per share in charges?
Market cap $145M.
Goodwill and Intanglbles: $386M.
COCO needs to write off $241M just to get to parity. And if it does that, will it fail the financial tests and have to post a bond? Remember that COCO acquired Heald for $395M. Now COCO is worth 1/3 of that single acquisition. Earnings went from $1+ per share to zero. Cash went from $500M to $37M. And the stock price fell from $20+ to $1.65. And here we sit awaiting the virtually invevitable COCOQ bankruptcy filing.
I know that many of you still see some blind faith hope in a total fiasco. That's your own fantasy. Reality bites hard. See you at zero.
Where are the impairment charges? What other future surprises is management postpoing/hiding? Profitable in 2nd half 2012? How? When are the unrealized impairment charges going to recognized. There's an unrecorded $400M+ loss coming. When will management choose to acknowledge its own impairment reality?
That represents a minimum $430M impairment charge.
If your house is worth $160,000 as per market value, and you provide a statement to your banker saying you own a $400,000 roof and a 190,000 water heater, what would your banker say about those stated asset values?