RE: Thoughts30 Jan 2020 13:31
Hi SJL and others
I have started to follow MMX just recently and I would like to ask some explanation regarding your message. First about the part:
"The most striking and for me, insidious part was the reference to writing off “ all aged Chinese debtors”.
Notably it didn’t state just the Chinese debt that had been marked before but ALL ."
If I understand properly, they realized that they will not be able to collect those, which I assume were a part of the "Bad debt provision" e.g. in the income statement of the 2018 annual report. I Also assume that they were part the the Assets stated as "Trade and other receivables". Am I right up to this point?
Since those were already stated as a loss, while it is a pity, it never counted as some earning and would "only" decrease the net Asset value. Am I still correct? Therefore, I think I do not quite understand what looks like a rant from you SJL. But again, I have been following MMX only very shortly and I am quite probably missing something there so I would be very happy to get some clarification.
For the rest, from what I get, the concern is that in the end, the main and maybe only cash contributor is the ICM portfolio. Is that correct?
Thanks for clarifying those points.