trading halt, page-15

Recent announcements mention a possible management buy-out so I presume that is the more likely scenario more than a takeover by a suitor, Chinese or otherwise.

Management are frustrated by the persistently low share-price which they view as grossly undervaluing the company thus they are acting on their opinions and trying to buy the company. Of course, part of the reason for the lagging share-price is their overly optimistic forecasts for prod'n/costs over the past 18 months which they've consistently failed to meet.

Over the past couple of months the average price has, I guess, been in the 40s (after being in the 30s for most of the previous year). It's hard to see management putting in a bid of 68c; the increase is just too high. However I would expect it to be above 53c to try and attempt people to sell. My guesstimate is 58c.

Of course, the real hope is that the MBO will then push suitors to make a bid and then we'll see some real share-price action. A cunning plan by management if that is what eventuates.