Companies trading at big discounts to book value

Abacus Property Trust: only produced enough write-downs to lose $52 million for the December 2008 half which reduced claimed net assets from $925 million to $853.8 million. The market capitalisation is below $200 million and the auditor is K Zdrilic from Ernst & Young. October 2009 market cap $662 million.

APN European Retail Property Group: write-downs and derivative losses produced a net loss of $276.1 million for the December 2008 half, but this only reduced net assets to $267.6 million when the market capitalisation is $15 million. October 2009 market cap $49 million.

Asciano: only managed a $93.4 million loss for the December 2008 half which reduced claimed net assets from $1.98 billion to $1.75 billion. The market capitalisation has plunged to below $400 million and the auditor is Duncan McLennan from KPMG. October 2009 market cap $4.6 billion.

Australian Education Trust: owns more than 400 ABC Learning childcare centres and the 2007-08 balance sheet claimed net assets of $200.6 million. Only declared a $41.28 million loss for the December 2008 half year, reducing net assets to $154 million when the market capitalisation is below $40 million. The auditor is Kevin Neville from Moore Stephens. October 2009 market cap $54 million.

Australian Vintage: the 2007-08 financial report claimed net assets were $343 million, but a $128 million loss in the December half reduced this to $213 million, yet the market capitalisation has fallen below $50 million. The auditor is Adam Thompson from Deloittes. October 2009 market cap $38 million.

Babcock & Brown Power: big write-downs triggered a net loss of $426 million for 2007-08 as it seeks independence from the parent and fired both the CEO and finance director. However, auditor Marc Upcroft from PwC has somehow agreed to claims that net assets are now $1.4 billion when the market cap is down to about $45 million. Check out the balance sheet on page 70 of the 2007-08 annual report.
October 2009 market cap $56 million.

Babcock & Brown: after muted write-downs which prevented the declaration of a loss in the June 2008 half, Babcock & Brown is now claiming to have net assets of $2.5 billion when it is broke although it has flagged huge write-downs if the full year 2008 results are ever released. Auditor Mark O'Sullivan from Ernst & Young clearly wasn't tough enough.

(Babcock & Brown Capital) Eircom Holdings Limited: market capitalisation has plunged to about $200 million but the 2007-08 annual report claimed net assets of $1.28 billion. The auditor is Victor Clarke from PwC. October 2009 market cap $85 million.

Babcock & Brown Infrastructure: reported a $245.8 million net loss for the December 2008 half but this only reduced claimed net assets from $2.96 billion to $2.36 billion when the market capitalisation is down to $150 million. The auditor is J Leotta from Deloitte, who has replaced his colleague Matthew Sheerin. October 2009 market cap $2.59 billion.

(Babcock & Brown Japan) Astro Japan Property Trust: despite declaring a loss of $247.6 million for the December 2008 half year, claimed net assets jumped to $859.4 million thanks to the plunging Australian dollar against the yen. The market capitalisation is down below $150 million. October 2009 market cap $229 million.

Babcock & Brown Residential Partners: hasn't traded since November 2008, suggesting that the $146 million in net assets claimed in the 2007-08 annual report has completely disappeared due to the global financial crisis. Declared a $19 million loss in February 2009 reducing net assets to $125 million but still appears broke with a $21 million loan also owing to Babcock & Brown. The auditor is A Wilson from PwC. October 2009 market cap $19 million.

Bradken: claims to be worth $345 million but the market capitalisation has fallen below $200 million. October 2009 market cap $817 million.

Brisconnections: the shemozzle that is the Macquarie-backed tollroad project claimed in February 2009 to be worth $887.9 million when its current market capitalisation is zero although there is supposedly $800 million still be called from investors. October 2009 market cap $26 million.

Boral: claims to be worth $2.9 billion when market capitalisation has collapsed to below $1.7 billion after the latest big drop in profits to just $75 million for the December 2008 half. David Rogers from KPMG is the auditor. October 2009 market cap $3.4 billion.

Bluescope Steel: claimed that net assets rose from $3.94 billion in August 2008 to $4.7 billion in the February 2009 balance sheet after declaring a $401 million half year profit that the market didn't believe as the stock tanked below $3 for the first time, sending the market capitalisation down to $2.6 billion. Bruce Meehan from Ernst & Young is the auditor. See 2007-08 annual report. October 2009 market cap $5.2 billion.

Centro Properties Group: shopping centre write-downs sent it to a staggering net loss of $2.055 billion for 2006-07 and then a further $2.4 billion loss for the December 2008 half which reduced claimed net assets from $4.14 billion to $1.65 billion. The market capitalisation is below $100 million and the auditor is Chris Dodd from PwC. October 2009 market cap $306 million.

Centro Retail: declared a full year 2007-08 net loss of $887 million and then a further $2.06 billion loss for the December 2008 half which reduced claimed net assets from $2.89 billion to $1.64 billion. The market cap is less than $150 million and Chris Dodd from PwC is the auditor. October 2009 market cap $423 million.

Cromwell: the property group declared a $72 million loss for the December 2008 half, but this only reduced claimed net assets to $608.4 million when the market capitalisation is down near $300 million. October 2009 market cap $471 million.

Challenger Financial Group: the new CEO Dominic Stevens didn't take any writedowns in the February 2009 interim result, so the market capitalisation of about $650 million remains massively below the claimed $1.66 billion in net assets on the balance sheet. The auditor is SJ Ferguson from Ernst & Young. October 2009 market cap $1.8 billion.

Challenger Infrastructure Fund: declared a $100 million loss for the December 2008 half but much bigger write-downs were warranted given the market capitalisation is down below $600 million yet the board and auditor Graeme McKenzie from Ernst & Young now claim it has net assets of $924.8 million. October 2009 market cap $578 million.

Commonwealth Property Office Fund: took modest write-downs of $203 million and finished with a net loss of $298.6 million for the six months to December 31, 2008, which reduced the claimed net assets from $2.59 billion to $2.25 billion against a market capitalisation of which got below $1.5 billion. October 2009 market cap $1.78 billion.

ConnectEast: the operator of Melbourne's Eastlink tollroad project declared a loss of $92.5 million for the December 2008 half, but after raising $500 million fresh equity, claimed net assets actually rose from $1.75 billion in August 2008 to $1.8 billion in the February 2009 balance sheet when the market capitalisation has now plunged to about $1 billion. The auditor is Peter Fekete from PwC. October 2009 market cap $1.3 billion.

Fairfax Media: new CEO Brian McCarthy took a gentle swing at the balance sheet with write-downs of $447.4 million announced in February 2009, producing a net loss of $365.3 million. However, the claimed net assets of $4.5 billion on the latest balance sheet completely dwarf the market capitalisation of $1.6 billion. Intangibles have only been cut from $6.5 billion to $6 billion, which is clearly excessive. Auditor Chris George from Ernst & Young was asked about this at the 2008 AGM but wasn't allowed to answer. October 2009 market cap $3.74 billion.

FKP: the teetering Brisbane-based property company declared a net loss of $151.2 million for the December 2008 half, which only reduced its claimed net assets from $1.34 billion to $1.28 billion. The market capitalisation has plunged to about $100 million and the auditor is Grant Saxon from boutique firm PKF. October 2009 market cap $854 million.

Funtastic: write-downs produced a $50.8 million loss for the December 2008 half but this only reduced net assets from $166 million to $111.7 million when the market capitalisation is down below $30 million. October 2009 market cap $68 million.

(Futuris) Elders: Malcolm Jackman came in as the new CEO in September 2008 and managed a net loss of $329 million in the December half after $346 million in write-downs. However, with debt of $1.2 billion and a market capitalisation below $300 million, the write-downs could have been much larger because net assets have only been cut from $1.3 billion to $850 million. October 2009 market cap $26 million. October 2009 market cap $1.03 billion.

Galileo Japan Trust: was late with its December 2008 results which came in with a net loss of $196.4 million after heavy write-downs. However, currency movements saw claimed net assets actually rise from $370 million to $386 million, even though the market capitalisation is below $20 million and bankers appear in control. The auditor is James Dunning from PwC. October 2009 market cap $26 million.

GEO Property Group: the former MFS Diversified Trust took a mild swipe at balance sheet values to deliver a net loss of $66 million in 2007-08. The December 2009 half then delivered a net loss of $125.7 million but this only reduced net assets to $166 million when the market capitalisation is about $30 million. The auditor is Tim Allman from PwC. October 2009 market cap $70 million.

Goodman International: only managed a $349 million loss for the December 2008 half which reduced claimed net assets from $4.66 billion to $4.55 billion in the February 2009 balance sheet. The market capitalisation is down below $900 million and the auditor is John Teer from KPMG. October 2009 market cap $4.2 billion.

GPG: write-downs and trading losses delivered a $110 million loss for the December 2008 and with claimed net assets of more than $2 billion, the current market capitalisation of less than $700 million suggest that bigger write-downs were warranted. October 2009 market cap $1.1 billion.

GPT: hedging, joint venture and property write-downs delivered a record $3.25 billion loss for the December 2008 half, but this only reduced claimed net assets from $8 billion to $7.22 billion when the market capitalisation has plunged to just $2 billion. The auditor is David Armstrong from PwC. October 2009 market cap $5.8 billion.

Growthpoint Properties Australia: (formally Orchard Industrial Fund) write-downs and derivative losses delivered a $137.6 million loss for the December 2008 half but this only reduced claimed net assets from $337 million to $191.6 million when the market capitalisation is about $60 million. The auditor is Peter Fekete from PwC. October 2009 market cap $263 million.

Gunns: declared a $33.6 million net profit for the December half and now claims to have net assets of $1.34 billion when its market capitalisation is down to almost $400 million. The auditor is L Franklin from KPMG in Tasmania, who has just replaced MG Wallace. October 2009 market cap $930 million.

Hedley Leisure & Gaming Fund: declared a $174 million loss for the December 2008 half after hefty write-downs which reduced claimed net assets from $326 million to $160 million when the market capitalisation is down below $50 million. The auditor is Graham Coonan from KPMG's Cairns office. October 2009 market cap $39 million.

ING Industrial Fund: the 2007-08 annual report claimed net assets of $2.722 but this will be cut in February 2009 with a big write-down given that the market capitalisation is down to about $100 million. The auditor is Douglas Bain from Ernst & Young. October 2009 market cap $703 million.

ING Office Fund: produced a $445 million loss in the December half of 2008 but foreign exchange movements only saw claimed net assets drop from $2.31 billion to $2.26 billion, which is almost $2 billion higher than the February 2009 market capitalisation of less than $500 million. The auditor is Douglas Bain from Ernst & Young. October 2009 market cap $1.6 billion.

ING Real Estate Community Fund: claimed to have net assets of $415 million in the 2007-08 annual report, when the market capitalisation is down to $25 million. Douglas Bain from Ernst & Young is the auditor. October 2009 market cap $49 million.

Lend Lease: $596.4 million loss for the December 2008 half reduced claimed net assets to $2.57 billion against a market capitalisation of $2.2 billion. October 2009 market cap $4.7 billion.

Lend Lease Primelife: despite Lend Lease injecting almost $200 million into the former Babcock & Brown Communities, the stock has plunged to be capitalised at barely $100 million. Write-downs led to a net loss of $204 million for the December 2008 half but this only reduced claimed net assets from $612 million to $553 million. The auditor is Gareth Winter from PwC. October 2009 market cap $290 million.

MacArthur Cook Property Securities Fund: claims to have net assets of $135 million but the market capitalisation is down to $13 million. The auditor is Andrea Waters from KPMG. October 2009 market cap $22 million.

Macquarie Airports: claims net assets $4.45 billion in the February 2009 balance sheet after reporting a $2.28 billion profit, but the market capitalisation of $2.6 billion suggests big write-downs should have been in order. Ed Barron from PwC is the auditor. October 2009 market cap $4.8 billion.

Macquarie Countrywide: delivered a $714 million loss in the December 2008 half courtesy of write-downs and hedging losses but this only reduced claimed net assets from $2.42 billion to $2 billion when the market capitalisation is below $200 million. The audit gig has switched from PwC's Voula Papageorgiou to James Dunning. October 2009 market cap $976 million.

Macquarie DDR: almost collapsed with too much debt such that market capitalisation is down to $50 million when the company still claims to have net assets of $865 million. Voula Papageorgiou from PwC is the auditor. See 2007-08 annual report. October 2009 market cap $104 million.

Macquarie Infrastructure Group: claimed net assets of $6.68 billion in August 2008 but took $1.7 billion in write-downs to declare a $1.2 billion loss for the December 2008 half which cut the claimed assets to $5.33 billion when the market capitalisation has plunged to $3 billion. Wayne Andrews from PwC is the auditor. See 2007-08 annual report. October 2009 market cap $3.3 billion.

(Macquarie Leisure) Ardent Leisure Group: reported a $486,000 profit for the December 2008 half but the balance sheet still claims the company is worth $471 million when the market capitalisation is down to about $200 million. The auditor is Tim Allman from PwC. October 2009 market cap $429 million.

Macquarie Media: wrote down goodwill by $127 million which totally accounted for the $127.2 million loss declared for the December 2008 half. Net assets fell from $965 million to $855 million which still dwarfs the market capitalisation of around $150 million. Wayne Andrews from PwC is the auditor. October 2009 market cap $349 million.

Macquarie Office: after raising $508 million at 20c in a one-for-one rights issue in late 2008, the market capitalisation still fell to as low of $550 million. Declared a loss of $1.1 billion in February 2009 which reduced claimed net assets from $3.1 billion to $2.735 billion. Voula Papageorgiou from PwC has been replaced as auditor by James Dunning. October 2009 market cap $1.4 billion.

McPherson's: the Melbourne manufacturer and printer somehow declared a $13.5 million profit for the December 2008 half and claimed net assets of $154 million when its market capitalisation has plunged to about $30 million. The auditor is Graeme Billings from PwC. October 2009 market cap $200 million.

Mirvac: failed to report a big loss for 2007-08 and then only did modest write-downs to produce a loss of $645.7 million for the December 2008 half year. This cut the claimed net assets from $4.4 billion to $4.2 billion which is way above the current market capitalisation of $1.3 billion. R Gavin from PwC is the auditor. See 2007-08 annual report. October 2009 market cap $4.47 billion.

Multiplex Acumen Property Fund: the property fund investor claimed to have net assets of $285 million in its 2007-08 annual report but then a $54.4 million loss in the December 2008 half reduced this to $188 million. This is well above the market capitalisation which has plunged to zero, although another 40c per unit is due to be paid by investors in 2011. The auditor is Tanya Gilerman from KPMG. October 2009 market cap $15 million.

Multiplex European Property Fund: write-downs and derivative losses delivered a net loss of $150.6 million for the December 2008 half which reduced claimed net assets from $202 million to $91 million. The market capitalisation is about $30 million and the auditor is Tanya Gilerman from KPMG. October 2009 market cap $52 million.

Multiplex Prime Property Fund: owns stakes in several major Australian office towers but is loaded up with too much debt such that the market capitalisation has plunged to $3 million when the 2007-08 annual report claims net assets of $258 million. Only managed a $38 million loss for the December 2008 half, which reduced net assets to $152 million. he auditor is Tanya Gilerman from KPMG. October 2009 market cap $0.

News Corp: was claiming to be worth $US27.8 billion ($A43.5 billion) when the market capitalisation was down to $A27 billion, but at least Rupert took the $US8.4 billion impairment charge on intangible assets in the December quarter result announced on February 6. October 2009 market cap $12.22 billion.

Oz Minerals: claims to have assets of $3.3 billion when the market says $1.55 billion even after this supposed rescue bid by the Chinese government through MinMetals. Michael Bray from KPMG is the auditor. October 2009 market cap $3.49 billion.

Pacific Brands: the board and auditor cut the net assets from $1.33 billion in August 2008 to $1.14 billion in the February 2009 balance sheet after reporting a $149.8 million loss for the December half. But this is nowhere near the market capitalisation which almost got down to $100 million. Graeme Billings from PwC is the auditor. October 2009 market cap $1.05 billion.

Paperlinx: the 2007-08 annual report claimed net assets of $1.92 billion but that was before an emergency $150 million capital raising which only lifted the market capitalisation to about $450 million. Has flagged a $600 million write-down after the $700 million sale of its Australian paper manufacturing business to Nippon Paper but there should be more. October 2009 market cap $423 million.

Onesteel: somehow managed to a declare a net profit of $228.3 million for the December half when its claimed net assets rose from $3.43 billion in August 2008 to $3.65 billion in the February 2009 balance sheet. Meanwhile, in the real world, Onesteel's market capitalisation has plunged to about $1.6 billion. The auditor is David Rogers from KPMG. October 2009 market cap $3.9 billion.

QANTAS: the February 2009 balance sheet claims it is worth $5.65 billion but that doesn't include the recent $500 million placement, so the market capitalisation of $3.2 billion is almost $3 billion below book value and the recent $216 million net profit for the December 2008 half should have been a big loss courtesy of write-downs. Martin Sheppard from KPMG is the auditor. October 2009 market cap $2.2 billion.

Real Estate Capital Partners US Property Trust: the old Mariner America Property Income Trust changed its name in late 2008 but is still only capitalised at about $20 million when its 2007-08 balance sheet claimed net assets worth $128.6 million. The auditor is Andrew Dickinson from KPMG. October 2009 market cap $36 million.

RCR Tomlinson: the Perth-based engineering project manager still claims to have net assets of $179 million after delivering a $7.6 million profit in its February 2009 half year result, but the market doesn't agree given the current capitalisation is below $40 million. DJ Wall from RSM Bird Cameron Parkes is the auditor. October 2009 market cap $154 million.

Reckson New York Property Trust: declared a $74.8 million loss for the December 2008 half but this only reduced claimed net assets from $247 million to $230.6 million against a market capitalisation of below $20 million. The auditor is Mark Conroy from Ernst & Young.
October 2009 market cap $32 million.

Record Realty: came out on September 1 with a belated $209 million net loss but this only reduced the NTA claim to 32c a share or $131 million, when the market capitalisation is only $3 million with the stock at 1c and suspended. Ed Barron from PwC is the auditor. See 2007-08 annual report. October 2009 market cap $0.

Rivercity Motorway: the Brisbane tollroad company reported a $150 million net loss for the December 2008 half, reducing its claimed net assets to $663 million against a market capitalisation of about $100 million. The auditor is Scott Guse from KPMG. October 2009 market cap $128 million.

Rubicon America Trust: property write downs led to a $140 million net loss for 2007-08 but it should have been more given it claims to have net assets of $210 million when the market capitalisation is below $4 million and the stock is suspended. James Dunning from PwC is the auditor. See 2007-08 annual report. October 2009 market cap $3.6 million.

Rubicon Europe: weighed down by excessive debt and big write-downs led to a net loss of $218.5 million for 2007-08. However, net assets still sit at $296 million against a market cap of less than $10 million, although the stock has been suspended since November 2008. The auditor is Victor Clarke from PwC. See 2007-08 annual report. October 2009 market cap $2 million.

Rubicon Japan: plunged to a net loss of $185 million after big write-downs but still claims to have net assets of $195 million when the market values the trust at less than $4 million. The auditor who signed this effort is Victor Clarke from PwC. See 2007-08 annual report
October 2009 market cap $4 million.

Seven Network: claimed in the almost incomprensible accounts produced with the December 2008 half to be worth $2 billion, but the reality is a market capitalisation of about $1 billion. Kenneth Reid from KPMG is the auditor. See 2007-08 annual report . October 2009 market cap $1.2 billion.

Staging Connections: declared a $15.1 million loss for the December 2008 half but claimed net assets only fell from $100.4 million to $96.7 million when the market capitalisation has collapsed to $3 million given big debts. The auditor is R Dring from PwC. October 2009 market cap $28 million.

Timbercorp: the annual report for the year to September 20, 2008, claims net assets of $595 million when the market capitalisation dipped below $50 million in early 2009. The auditor is Sneza Pelosi from Deloitte. October 2009 market cap $15 million.

Tishman Speyer Office Fund: net loss of $223 million but this only reduced claimed net assets from $746 million to $444 million when the market capitalisation has plunged below $50 million. October 2009 market cap $109 million.

Trafalgar Corporate: the property developer announced a loss of $33.2 million for the December 2008 half but this only reduced net assets to $158 million when the market capitalisation is below $30 million. The auditor is Eileen Hoggett from KPMG. October 2009 market cap $54 million.

Transfield Services Infrastructure Fund: claimed to have net assets of $328 million in the February 2009 balance sheet but the market capitalisation has fallen to below $250 million and we're yet to see any meaningful write-downs. The auditor is RL Gavan from PwC. October 2009 market cap $253 million.

Transpacific Industries: claim to be worth $1.57 billion in February 2009 after only declaring a loss of $52.6 million but the reality is now a market capitalisation below $600 million, so maybe some of those high-priced acquisitions should have been written down. Stock now suspended pending an emergency capital raising. Robert Forbes from Bentleys Chartered Accountants is the auditor. October 2009 market cap $1.4 billion.

Valad Property Group: the 2007-08 annual report claims net assets of $2.088 billion, which was cut to $1.07 billion in February 2009 with a net loss of $821 million for the December 2008 half. The auditor is Daniel Prothero from PwC and the market capitalisation is below $50 million. October 2009 market cap $217 million.

VDM Group: the engineering project manager declared a net profit of $3.6 million for the December 2008 half, even though this left claimed net assets at $213 million when the market capitalisation has plunged to below $20 million. The auditor is Peter McIver from Ernst & Young. October 2009 market cap $64 million.

Virgin Blue: $114 million in losses from ineffective hedging and derivative contracts caused a $101.4 million net loss for the December 2008 half year. This send the claimed net assets plunging from $925.3 million to $604.8 million but it remains well above the early 2009 market capitalisation of $250 million. The auditor is Robert Jones from KPMG in Brisbane. October 2009 market cap $983 million.

Wesfarmers: claim to have net assets of almost $19.5 billion when the market capitalisation is about $12 billion courtesy of the ridiculous $19 billion price paid excessive debt taken on with the Coles Group acquisition. The auditor is Mr Sean van Gorp from Ernst & Young. See 2007-08 annual report. October 2009 market cap $25.6 billion.

Westfield: after a $2.2 billion loss for the December 2008 half, still claimed to have net assets of $27.9 billion against a market cap of $23 billion. The auditor is Chris Westworth from Ernst & Young. October 2009 market cap $30.4 billion.