Originally Posted by
Icarus2001
Well as I said Mick, I am amazed as I know they were very profitable. Locked in FIFO routes and East coast freight.
I see the REX share price is stubbornly staying at twelve month lows. Although in fairness everything is down, its October after all.
Yes, I was also surprised by that result. It was even more confounding when you consider that Rex has increased the book value of NJE twice since acquiring it, all the while knowing exactly how it was performing.
Rex and an LKH-led Joint Venture jointly paid Cobham $48.18 million for NJE in September last year. Just three months later they re-valued NJE at $77.64 million, and six months after that it had purportedly nearly doubled again in value to $142.67 million. And it lost money. Something very odd going on there.
It would be interesting to get a look at the P&L for NJE and see exactly where the problem is.
Regards share price, once they fell through the $1 floor it only took a couple of days before they were testing 90 cents. They then had a week at 90 and subsequently fell through that. For now Rex is finding support at 85 cents.
By any objective assessment, they have managed to work themselves into quite a challenging position.