something to watch, page-56

Hi T23

At 26 cents a buyer could pick up the company at NAV. In essence, this values the insurance tail (in PV terms) at zero! Now I am sure Kirk would not be happy with that ratio!

The problem CIX has at the moment is lack of transparency. Kirk only makes annoucements when he needs to; and ignores the elephant in the room if said elephant has not arrived at a reporting date.

In this case, the elephant is the fact that CIX is now trading well below the original buyback price (which if memory serves me correctly was at 36 cents) which was, at the time, around a 10% discount to net assets (including intangibles). Using the same logic, Kirk and the boys should be buying NOW!

But they aren't. Why? - capital too thin? (no, according to Kirk's comments last year; APRA capital ratio changes? (no, or they would have needed to disclose); buying something else?...

I have noticed the bid/offer volume pick up in recent weeks. I feel that this has recently become a "traded stock" (in a small way) and traders may be the first ones to really dump this if they don't get some answers soon.

Kirk needs to step up to the plate. If he doesn't he may need to buy a new plate (as someone will have smashed the first!).

Best regards
Kit