ZA Group Inc (ZAAG)

[wallstreet1231]

ARNH book value - allow me to share my opinions. First, ARNH has not issued an update since September 30th, 2013. ARNH has gone through three ownership changes since the September 30th, 2013 report. ARNH went from a company focused on extended warranties for automobiles - that never got off the ground - to an asset holding company - to what appears to be a shell company. I say shell as it doesn't appear as they have ongoing business - the new President who came in last year has a background in real estate and I think many were optimistic that he would somehow re brand the company in this arena. Unfortunately, no update was provided by him to shareholders and now it appears he has left the company.
With respect to the assets, see below as to what was reported back in 2013. I seriously doubt the 174k in cash still exist, the inventory of 544k is undefined and I doubt the inventory is still valid, the 12m in identity theft cards I would find hard to believe are valid and not expired - it doesn't appear that these were ever marketed, the 2.8m in goodwill is questionable as it doesn't appear there is an ongoing business here.

I am not saying that ARNH is a bad investment and won't offer some value down the road. I am saying that to buy ARNH based on what is believed to be its asset value might be an area you want to re-think.



Covenant Alliance Group
Consolidated Balance Sheet
30 September 2013

Cash 174,792
Accounts receivable 113,875
Merchant reserve 3,702
Inventory 544,139
Other receivable 21,329
Total current assets 806,403
Property & equipment 46,773
Accumulated depreciation (2,773)
Identify Theft Card 12,247,550
Marketable securities 193,748
Intangible assets 14,500
Accumulated amortization (4,247)
Goodwill 2,844,720
Total assets 16,198,108