Ann: Appendix 4C - Quarterly, page-3

This is getting interesting. We now know the reason for the recent (brief) price rise, NovaPort increased their shareholding above 5%, but the price has soon dropped back a few cents.

The quarterly was good, and profits are happening - well done.

But, from what I can see, the problem for some fund managers is the potential performance shares for the Cohort acquisition. This is definitely hanging over the stock for some managers, at least until the second quarter of 2018.

At an average estimate, you would assume that the additional (forward) potential shares and cash to be issued to Cohort would amount to $10m and 40m shares, that's a 40% dilution and a large chunk of cash which the company will pay out of CBA borrowings.

So we are looking at a significant overhang, and dilution, and debt for some time going forward.

Cohort was a great acquisition, but it looks like some fund managers are considering more carefully the overall cost of the acquisition, particularly over the next year and a bit.

Gw