structuring for growth, page-7

Hi Peterdoobes,
I have read a number of your posts and I do remember someone discussing CIY a number of years ago on another forum(now defunct). Anyway your predictions for earnings are pretty accurate and I for one am impressed.

I have recently joined their books in a grand style and expect a reasonable return.
I noticed in CIY's presentation, while they were happy to forecast earnings in a few different varieties, they avoided forecasting an EPS figure while indicating NPAT and an increase of 34% for '05.
I understand it should be easy to work that out, but I think their reason for doing so is otherwise.

Do you still expect EPS around the $0.58 you indicated back in April and what effect will the SEL aquisition have? I feel they avoided an EPS figure because of the unknown quantity as yet from the aquisition and also their further desire to keep increasing shares on issue.
Have you any comments on that?

CIY's long term PE is approx. 11 but from it's shareprice in past years can run a PE anywhere into the high teens. In that respect I expect a shareprice leading upto end FY05 of between $6.50 to $7.00.

Given the SEL aquisition plus a few other initiatives that might come about, we may be in for a surprise.

Possibilities for this year are:-
*>34% increase in net as flagged.
*A possible revision mid year to that figure.
*Larger dividend for '05.
*Purchase of S8 adding approx. $12-14 Ml to the net and most probably EPS positive in '06.
*More shares on issue increasing liqidity.
*Possible inclusion into ASX 200.
*Attractive then to Fund managers.
*Possible purchase or merger with BRK.
*Possibly adding similar advantages as with SEL although I suspect BRK is possibly their real target (in wanting to retain management while disposing of SEL's).
*More lots developed at Martha Cove than original plan.
*More projects announced re. IDA and CPK.
*CIY continuing rapid expansion and diversification.
*Interest rates rising may see bigger margins and higher profits for CIY as borrowers (developers) attempt to lock in rates to contain and cap costs.
etc.etc.

Ofcourse the bad news could be, exactly the opposite to all of the above!!!!!

I apologise if I bored anyone but I only very recently (2 weeks) took an interest in CIY and I am happy to receive yours or anyone else's comments while waiting for my dividend, haha.

Major