Research Report and More, page-25

hi Harry,

couple of points - the easy one first.

I have seen valuations of the market size all over the place.

NC told me $10 billion in the US alone a few weeks back ------------- that figure cemented into my brain - and I thought ---------- where did you get the 10 bil from? And, I was going to pull him up and ask ---------- but, honestly - it's like pulling up a run away tractor on a steep hill --

by the time I got a word in about 10 minutes later - I had forgotten about 20 other questions

I am about to start a heap of questions for him - on all sorts of things - that will do a couple of things - it might get some answers - and, it will also give him a heads up for the sorts of questions he is likely to face in Adelaide.

Also - on market size --------- there will be a research report out --------- ?? tomorrow I think - I don't know how good it is - but, it might help us a lot -- as it has been a while since a current one has been done.

I think there is enough market in the US alone - commercial and military - to justify a lot higher MC for ajx - on the assumption that we get the military and we get out in the market place commercially -- which we certainly have started.

One big difference for us compared to the existing is 'margin' - and, one of my critical areas of watching ajx in the future will be the management of supply chain - that is where the real margin is driven - although ajx margins are bloody good anyway from what I have heard - even atm.


As to "Pinto, you suggest when US investors are introduced they are likely to want to own 100's of millions of dollars but that cannot be possible in a business with such a small market cap, surely they would instead be trying to acquire the business.."


Well, what I am suggesting exactly - is what I have heard - that 'several' institutions - corporate and family based funds are lining up to be investors on listing in NY.

We also know that one of the criteria for picking an investment bank to 'sponsor' us with listing - that bank will be picked with one of the criteria in mind being that they bring institutional clients into the business - or into the mix.

Now, that is what I am told. -- If that is correct - then I can only 'assume' that any institutional client brought in by a large investment bank - isn't going to be buying $50 k worth of stock.

I have no idea how much they will want to be in for - but, I would have thought we could expect - nothing less than $500k a pop and maybe up to $10 mil ----------------- I am guessing - but, they are big players.

You are correct ------------- how can it be possible to have large investments (by our standards) - if there is bugger all to invest in???????

I don't know either ---------------- unless, the MC is much higher by then.

The other possibility is that it 'could be an IPO' ---------- and I have heard that term used.

But, I have also had NC telling me there will be NO raise -------- but, if there was a raise - that it would only be to cover the cost of listing.

So ------------------ how could you have an IPO -------------- if there is NO "O"??? to offer to the "P"?

Buggered if I know ------------- and, that is certainly an area I want to get clear asap.

I heard a totally different story only weeks back ----------- but, at that stage I knew that nothing was set in concrete.

I am seriously hoping we will know by or and at Adelaide - including some details.

NC is a very lovely bloke and he works at a thousand miles a minute - he is bloody hard to keep up with - so, I find, I just get something worked out - and it changes - not because it wasn't real in the first place or because of dishonesty - but, because things are happening in the now - so, I go away and think about them - and then, in a day or two, I have a clear picture --- only to find that rocket ship AJX has moved on to the next galaxy and the whole picture is different

I think March is a big month - certainly we will get a lot of good goss in Adelaide and maybe we will get some information tomorrow that is new.

That said - I expected more in Feb ------------ I now know that the anns. in Feb. were 'good' - but, unless you had things explained to you, I don't think a normal skim of reading the anns. would have told the average investor or trader that.

What happens is NC gets all excited - because he knows what he knows ----------- and he goes into neuronal turbo mode - but, then he writes the announcement and it goes off to the censor police - and they rip it to shreds.

Then - what we get is some bloody ho hum statement that we all sit back and think ---------- fair dinkum, what was the fuss all about

Don't know what can be done about that - bar limit expectation in the first place. The military thing is a classic ----------- if one could see this as a horse race - one would see that there 'were' a large number of horses ------------ but, a lot have dropped out -------- dead - and AJX is right up in the front group, sitting on the rail with a glorious run.

Now, you can see that if you read the ann. and had a bit of information on how it works - but, unless someone told you - you certainly wouldn't guess it. If you have a conversation with NC - as he does bloody cartwheels down the street telling you about the progress - you begin to get the idea - but, he can't put it in writing in public so he tells me.

Commercial isn't as bad -- but, the news isn't all that good for clarity either -------------- most of the time there is commercial in confidence stuff -------------- usually the name of the customer - sometimes the amount of the contract - god knows what else - so, again, we are left to either read between the lines or pick up the phone and ask.

IMO, the only real gauge going forward is going to be reports (if they are good) - and quarters and certainly halves ---------- which is why SP's move on them normally.

Again --------- the yanks might come in and royally stuff up my thinking there - if they decide to take the positions they say they are going to ------------- ???

Again - will they do what they say? - and, back to your question -- if they do what they say - how the hell are they going to do it with a small MC??

Don't know - just know it's exciting.

I also have reviewed my idea on an ann. today ------- tomorrow I am pretty sure on - and I am pretty sure on soon for others - but, things change here so bloody fast and if we were going to get something today - I would have expected it by this time??

have a great day

Pinto