50% increase in revenue, page-47

After having given myself a time-out in the naughty corner I have decided to reply.

Thanks for your comments. On balance these are my views:

1. There is huge potential for this market and the sort of place it takes you is exactly where I would like to invest. I do look at companies results but themes are my game - look for a shortage or need and see if anyone is in that space and can make a bundle. Services by the very nature of the word has always been ancillary to your primary task so essential services are just that. However global warming , tree hugging and the rest will make these services very expensive if they are not already there so management of these is becoming critical.

2. They were the first movers.

3. No other listed company IMO offers an avenue into this market segment.

4. The problem is if the company had only focused on this area it would probably have 100m shares in issue not 2 billion. This dilutes the reward potential. Its not something that people look at often but you need to look at future profits to see when and what to expect IMO. If 2c in the next 2 years is your objective than it can do it but I think that in the past year the damage has been done the 5c scenario is very far away even with a big deal.

5. Management are not a direct problem IMO, they indirectly are too optimistic if results are to go by. I dont buy the connections - If the Chairman had real connections we would have a cornerstone investor and some big announcements or we would have closed shop. Guys he has been there for almost a year and must have had contact with the guys through Mad energy.

6. We raised the issues regarding annuity style companies with management and margins and UWC etc etc and if truth be told we were assured its all in hand. I do think Mljet has a point the directors focus too much on the positives and have not stood up and admitted what hasn't happened. If you were as quick to hail the UWC contract they should have announced delays not just ignored it.

7. The half year - I hope everyone is planning for a fair amount of red. The planning slide moves most new stuff into the second half. If that's the case the one quarter of positive cash flow is hardly worth a mention. That said on 9m its at least a small profit but I have to take that on-board and admit that this company has a habit of over-promise and under-deliver - So I am concerned that with everything in the second half any slippage and down we go again.

8. The note - Yes you can default and then start negotiations we all know that but in reality that's a hard road to follow as you have to explain that move to potential customers. If you issue a default notice what price the shares than? I just think its unthinkable to invest in a company that hasn't solved the most basic of issues and done this well before the time. December 10th and no news is really not the time IMO.

9. I think the investors are amazing in that they rock up being positive despite all of this.

I will give you guys my thoughts as I see it.

I hope they solve the Note issue very soon and that the big one is landed. Dont however say you cannot sell it does nothing to your wealth just caps your opportunity in this stock look at others they have been in speculative stocks and have succeeded.


I only hold a few.