Ann: Significant Iron Mineralisation Intersected , page-36

re: Ann: Significant Iron Mineralisation Inte... Hi doomdog,

In response to your and PP's comments:

"If you were waiting for the right time for a takeover, wouldn't it make sense to cap the price while you fiddled?"

Absolutely, if it could be done with certainty but I don't think "capping the SP" is possible or the reason for the current price, please refer to my previous post for the reasoning.

"This is why a share buyback makes such good sense for CFE. What better investment is out there?"

I agree with you on this and have been championing a BB for a long time as it seems to be a guaranteed win for me. Management however think differently. I read something about management accumulating - maybe this is why they delay on it. Like I've said ad nauseum, if they wait for a buyback until the SP is a dollar, they will have missed a great opportunity IMO.

PP: "Proofreader...again, you make the error in assuming full knowledge by all in the market. Not so, and we who do have some insight into its VALUE aren't in a position to influence it (the market that is)."

I addressed this point the last time you responded to my post. Firstly, I do not assume full knowledge by all in the market. I assume some knowledge by some of the market but certainly enough to raise the SP to above the current level IF the claims people say are true. Worth over a dollar, risk free etc etc. And you think enough people aren't going to know about this if it were a near certain multibagger? Everyone wants to make money, if something were that good more than enough people would know about it.

Secondly, if the SP IS languishing due to lack of awareness (of which I am unsure) then I feel this is an error on CFE's behalf. If you have a product so much better than the opposition and current value, failure to raise awareness to a level where you will receive true value is poor marketing/promotion.

"I find it fascinating that we keep comncentrating on what other people do. If you believe after research that the VALUE is there and that management have the ability to unlock it in the short to medium term and there isn't a better opportunity given the risk involved...why be concerned at what others think or do?"

Firstly, you state there isn't a better opportunity given the risk involved. IMO this statement indirectly contradicts your initial claim the low SP is due to lack of awareness. Again I would state if there truly is "(no) better opportunity", ie we have the best thing in the market but price has not risen due to lack of awareness, then it is an error on CFE's behalf. If you can't raise awareness when you have the best product on the market that is definitely not a good thing.

Secondly, you can only sell for a price someone is willing to buy. A lot of business is dictated by other people. Imagine someone who bought in at 70c on a margin loan with a comfortable cushion. They would be forced to sell out based on "other people's perception". Likewise someone who needed the money for something else, such as a baby on the way, etc etc. They may be forced to sell out at this low shareprice due to "other's perception" so saying it is irrelevant is incorrect IMO. And don't blame them for needing money, one of the benefits of shares are they are supposed to be liquid, the situation of a severely undervalued SP for 2 years, if this is true, is ridiculous.

Now I've held this stock for a long time also and if the scenario you and others describe is true then people like myself have every right to be concerned what others do if it affects the SP.

I've used this example before, but you remind me of an OZL poster who, as the SP kept dropping from $3 to $2.50 and complaining posts began raining in, told everyone they were soft because all that mattered is the VALUE of the company, the PRESENT PRICE was irrelevant as long as true value remained. It kept dropping until it was under $1.

I'm not saying I believe this will happen to CFE (God I hope it doesn't) and I'm not really criticising management, who in my limited understanding have done a great job (aside from SP and continual lack of buyback) but current price definitely matters IMO.