[villafan]

That is something I know very well.

Believe me, I have seen this story a lot of times, and I have written a lot of articles about similar situations. Companies that have too large goodwill posts in their accounts compared with the real asset value end up either as busto or get bought out for small amounts.

When I predict big trouble for Sportingbet, I am not talking about their equity value that is around 200 million pounds and way too high. I am talking about their last financial report that shows that they have lost their ability to make money. Combine that with

* Low net cash
* Still very high goodwill
* They must pay 33.3 million dollars in cash to the old Paradise owners


then you have a company that have to get access to cash as soon as possible. Borrowing from banks will be very tough when there are no values to take as collateral (remember almost all values are goodwill, as you can see in their last report).

It is how to finance the short term for Sportingbet that is a problem.