time to buy more, page-29

Okay lets deal with all the issues:

1. Caketin - My discussions with a few holders who are there for the long term has all been positive one has a very large stake - They are happy with progress - however - there is always a however or but. They have all said they expected a better half year - what is also not said is remember that the interim had to service the extra shares but really had not had any of the assets working for the half year. As I understood it the interim referred to timing and that it said that large projects land when they land. My expectation is if they deliver $1,8m plus at the EBITDA level then we will see a change of sentiment from everyone. Nothing improves outlook like delivering on promises - so its nothing out of this world just delivering what you saw.

2. Dreamcatcher - No I dont see any problem with the health care spend - I do see a more differentiated spend and those on private health care affording more. The spend is not going down the trajectory of growth that was proposed before is being cut back. That is what I did not see initially until a commentator said many of the proposals was to slow the growth projected and to cut back the promises made by labor. The squeal by states is rhetoric - they were traveling down the road of a national healthcare scheme where they spent the money and the commonwealth picked up the tab. They looked like they could divert the growth of both education and medical spend on the back of the JG crew doing the heavy lifting - it was a great idea until you costed the programs going forward. Thats why I hate these budgets you tell everyone you will add $10billion but its not next year but over 4 years and know full well that by the time you spend the money its after another election. My belief is that the cake is big enough for these guys to continually do a better job and make more money both organically and with a few strategic acquisitions. The $20billion fund - I have never heard such rubbish in my life - pay now we will cure you maybe 20 years from now. This research and development tax break is being abused in my opinion. My accountant friends say its questionable at times whether is research or its just refining what you need to do to stay in business. I personally think each company should have to have it approved - there is real stuff like AHZ and there is stuff like MHM which is trying in my opinion to get something to work. I dont support it and I think its a setup to get GST increased and then the co-payment will go away. Cheap and nasty trick in my opinion to get bigger government overall.

3. general - I think that there is just too many shares coming onto the market for sale and as such it isn't in my opinion looking good at the moment for June. I have not been buying @27c because these volumes suggest that there is at least a 2 to 1 seller to buyer at these prices - In my worst nightmare I think it can go to 20c and that is just plain ridiculous but if other companies are where I am I have huge CGT realized profits this year having exited both electrical and gas infrastructure and as such I am looking to sell anything that has a loss that will reduce my tax - as long as it can be acquired with good certainty in the future. That is where this one is different for me - I have built a stake still below current selling and still a bit of a way to go to breakeven but I am not sure I can get the stock again so will hold through the bottom. I know the v37c placement was oversubscribed but I think a lot of players who got scaled back really will just look to get out and I think those that are still committed are not really sure what will happen so no-one is really firing any real ammunition. Its 200,000 here and there - that's not a support platform. I am full up with a little wiggle room but that is if it gets to 20 to 23c.

4. I am not sure if the placement has not left a bit of a cautious response from those that bought into this for the first time. They are down 27% with a market that moved upwards through that period. Really this share which used to support my outperform status has now been dragging me back. I am sure others are probably thinking the same. when I was part of a listed management team we used to get the placing broker to get a commitment to mop up on behalf of those that got the benefit of the placement. They did not hold the price but would enter to buy a few if the drop was 10% and then 15% and then 20%. I don't see that done here and what it does is allow it to freefall. Then you add to that the dividend that puts more shares in the hands of investors and they sell those as well. Personally I think the company needs to deliver the full year and then it needs to do what is necessary to keep hitting its forecasts. I also don't think it would be remiss of management of entering the market to do a buyback and take 2 million out of the sell column at 25c or below. that will be a great asset for the company and improve all shareholders values.