somehting not right here, page-15

Here's a few thoughts. First the announcement is exceptional and anyone who wants to argue that, please step up.

The company spent $10m on capital assets which will be back loaded from Perth to Sydney at very good freight rates, so the cost is small pickings in my view. And then the Feds coughed up $10m and NSW an undisclosed amount...fantastic, free money.

The company has over $15m in the bank and spends $1m a month setting themselves up and buying capital assets, so I don't see any CR in the medium term, so we can ignore that.

And then there's all the talk of more contracts. How can that be anything but top notch.

Before someone asks, the Freo property is in a zone that is about to be or has been re-zoned residential, so I expect the lease holder will not be giving a damn about Quickstep moving out or having to re-instate. Just send in a D9 dozer.

Now on to the SP. Word on the grapevine is that State One are updating their research as we speak and another new supporting broker is doing the same and introducing QHL to their substantial client list. Today's churn has accumulate by broker and bye bye disgruntled holder written all over it. That will change in the next week or two, and IMHO, the only way is up then.

So we have a company that has gone from a bright idea to a major manufacturer in one of the world's most profitable industries with probably the highest barrier to entry around.

If you feel negative about that, sit down, have a coffee and think about it for 10 minutes. If your still not getting it, sell tomorrow and move on.

CD