___Are you happy that the company keeps on making a pigs ear out of what should be straightforward releases?
*When I'm perfect I'll expect perfection
___Do you believe that we are getting our money's worth out of Landerer & Co?
*Yes I do.
___Even if you believe that we are (which I certainly believe we are not), do you believe that we can afford such luxuriously priced services?
*I believe management has discussed and chosen the best suited legal firm for the company in their opinion. These are decisions that management are paid to make. Those that don't think that management are doing a good job can always vote against their re-election. I'm happy to accept the majority decision of shareholders although I accept your right to disagree.
___Do you know how many fewer shares would be on issue if we had cut down on extravagances such as this and our prime real estate offices? Hazard a guess. I would guess that instead of the current diluted 150m shares should QVT convert, we would be looking at 100m.
*I'm not sure I understand your 'hazardous guessing'. Are you saying it has cost us 50 million shares to supply these services or that the difference for cheaper solicitors and cheaper offices would be 50 million shares? When I checked the company's annual report I found
"Rent and serviced office expenditure" paid to State Capital Property Pty Limited relating to TZ Limited's registered office at Level 11, 1 Chifley Square Sydney for the year ended 30 June 2010 was $140,931
Serviced offices will normally be fully equipped with phone lines, net access, bathrooms and kitchen facilities. Most will also provide the use of receptionist, security team and general building support (including IT, cleaners,maintenance etc). What's so appealing about serviced offices is you aren't required to pay extra for this level of support; you only have to pay your monthly rent, everything else is inclusive.
So I find this of acceptable value as for the legal expenditure perhaps you could supply me with the figures that make up the rest of the 50 million shares.
___Are you happy that we voted on remuneration for a Company Secretary/CEO, but now that we have a better CEO, the old CS is collecting the same huge salary while making basic errors?
*Personally I did not vote for Kenneth and was vocal about my displeasure over his remuneration. However it was a majority vote and as such I accept the decision by the majority of shareholders.
___Are you happy that shareholder updates/company presentations are not being released to the market like other companies do?
*Yes I am I think communication has improved, and I feel that they are communicating in an appropriate manner.
___Are you comfortable that travel, premises and shared services are provided by our Chairman's companies? Yes I am I have no doubt that Mark Bouris is of credible enough character to keep these transactions at fair market value and at arms length.
___Are you happy that the biggest asset that MB should have brought to the company, has been non-existent?
*As we all seem to have differing opinions. What is 'in your opinion' the biggest asset that Mark Bouris 'should have' brought to the company that is non existent?
___Are you entirely sure that TZ's supply problems weren't caused by the ballooning payables balance? ie supply was restricted until bills were paid.
*I have no reason to believe that this is the case other than your suggestion that it is so. However with more funds in the bank perhaps more substantial forward orders can be made to insure against further shortages.
On that note the economics of stock purchasing, forecasting demand, inventory levels is a complex issue often companies work on JIT (just in time) manufacturing in order to keep inventories at a minimal cost. When dealing with new products and as is necessarily the case subcontract manufacture with its third party suppliers, it is understandable that there may be some shortages or supply line problems that effect the ability to supply from time to time. Coupled with inventories being run down to save costs and meet lesser demand I believe this is where the problems arose. I'm confidant that management would be working to eliminate these problems.
___Are you comfortable that QVT are not converting most of their notes, thereby saddling TZ with a huge debt and dissuading investment?
*I have no control over QVT's decision and I'm sure that they will do whatever is most profitable for QVT, Therefore I don't let that influence my level of comfort.
___On this point, why do you think QVT do not wish to convert remove TZ's debt?
*Please see above.
___How do you think QVT will convert their debt without takeover provisions coming into effects? (They can't)
*Perhaps with further rights issues, capital raising there will be enough dilution to dissolve this issue. Perhaps QVT will sell down some of its holding. I'm sure QVT will do whatever is in QVT's best interest.
___No none of the above points are productive as it was meant to stimulate discussion which has not really been forthcoming, but how can it be when some of you just cover your ears and continue to whistle Dixie?
*Sorry I can't whistle Dixie, but I am trying to learn the saxophone, however it is probably a good idea to cover your ears when I practice.
Good luck and Kindest regards to all
TZL Price at posting:
34.5¢ Sentiment: Buy Disclosure: Held
(20min delay)