Aurora Acquisition Corp (AURC)

[Tr8dervic]

To those that are confused by 04 vs 05...pro-forma you always use the old assets that were acquired to make a proper comparison between old and new. ie: even though some assets were acquired in 05, they are incorporated in the 04 financials to make a correct comparison. The klyon assets will be in ADDITION to what is stated for 04/05.

As to the value of the assets...accounting rules dictate they be shown on the balance sheet at the LOWER of cost or appraised value. Whatever value is shown, in this case 4 bln+, is the LOWEST value they are allowed to state by accounting standards. It could easily be much higher.

For example:

I have another stock, Harken Energy, that holds 34% of a Colombian oil co, Global Energy, that they acquired for 70 cents a share. The Global stock is now about $5 a share but Harken still shows them at .70 on the balance sheet because that is the lower of cost or appraised value. Every time Harken sells any part of Global they immediately recognize a 600%+ gain on the difference between book value and the sales price. If you look at the income statements of HEC for the past 3 quarters you will see what I mean.

Note: Do NOT run out and buy HEC based on the above. I am 99% sure they will show a LOSS of 2+ mil in Q1 due to hurricane shut-downs and other accounting related issues. On the other hand, I am 99% sure they will show a 12 mil+ PROFIT in Q2 from the same accounting issues. IF they take a hit after Q1 is released it would then be a buying oppty imho.