new substantial holder, page-7

A couple of things to add here.

First I agree, especially in current market conditions, it is always positive to see an announcement of a new substantial holder. However, if you look at the announcement, under the column "registered holder of securities" you will see "national Nominees" listed quite a few times. National Nominees has been the number 2 holder in the top 20 for some time now, so acorn has obviously been holding for quite a while and just recently gone over the 5% threshold that makes them a substantial holder. (it did also say they had been buying since 26/4/07).

Secondly, re dividends, Mike, do you think Lange has finished with growing the company through acquisitions? I do not believe he has finished, and it is for this reason I doubt there will be a dividend next year. I would much rather see acquisitions financed from profits as opposed to paying a dividend and then issuing more shares. Patersons (who have been the leading broker in their last 3 placements) are not forecasting a dividend until 2010 which, incidentally, is when the options expire.

I am as astounded as anyone that the SP has fallen this far. I see the people on the WOR thread whinging about that SP, but WOR is still trading on a PE of 8. NMS is currently trading on a PE of 3.5 based on 2009 forecasts. The only difference is that WOR pay a dividend.

I reckon NMS would be a very strong chance of beating their profit forecast next year, and if they do, in these conditions, then the serious re-rating will come.