"Targets now must be met or they will be shown the door at the...

"Targets now must be met or they will be shown the door at the next AGM"

To his credit WP has from the beginning been transparent so that he could be held accountable. From what I've seen he is more than happy to be judged by his performance. But why on earth would you try to throw out a team that, based on the business performance numbers we're getting, are so clearly turning the ship round, and announcement after announcement are demonstrating they have the goods to make us a success? Things will go wrong at times, of course, but except for gross negligence or misconduct we don't gain anything by kicking out a high performing team, and no mistake that is what we have. I have no doubts this team is the best thing for my investment.

On the whole cap raise thing, WP was having to steady a very shaky ship when he commented "no more dilutionary capital to get us cashflow positive". The raise just done was not about becoming cashflow positive, it was about accelerating growth. It might be unfortunate he made the comment at all, but which would you rather: no cap raise and track along the Baseline trajectory, or do a small cap raise and generate an extra $1.5billion - yes, billion! - in sales over the next 5 years? That part of the equation is missing from the discussion. If they fail to significantly outperform the Baseline numbers then, sure, take them to task. But let's not jump the gun, nor paint a revisionist picture of why the raise was done.

On the Ratty thing, I'm no lawyer so I can't credibly comment on the views put forward as to whether what has occurred may be criminal. If it was I wouldn't expect to hear a word from the company. Investigations and legal proceedings would be undertaken by the right people in a confidential manner as is appropriate to preserve the integrity and efficiency of such processes. If it isn't criminal, and that's my layman's view, then what is there for the company to comment? MC Mgmt have their own board and funds management people, they'll do their thing as all funds managers do. From what I understand it is tax loss driven, and that explanation makes the most sense to me. I also understand the $500k investment is still to be taken up, we'll get confirmation either way shortly.

As to the share price, day to day fluctuations and short term movements are typically not indicative of the value of the company or its performance. Not long ago we hit 40c, what exactly has happened since then to warrant our share price dropping 40%? Nothing. The company's plans are all still intact, momentum is building in every part of the system, and in as little as 12mths we won't even recognise the company as it looks today. I'll admit I am a little curious about if the current weakness in the share price is part of a re-entry strategy in the new financial year by a bigger player, but I doubt we'll ever know. And it's speculation anyway. In the meantime, we are heavily retail oriented in the register and that typically means the share price is more sensitive to sentiment. One of the best milestones to hit will be when we become part of the ASX300 and then ASX200 indices, it will bring in more institutional money and should calm some of the wobbles we currently see...or maybe not! Volatility is part of the game, and the disconnect between price and value is where the smart players make their coin. The difference going forwards for us is that we will have cashflow with a very significant growth profile (78%pa!!) to keep anchoring back to.

Sentiment: mad to sell, even madder not to buy!