Petra Capital Report: Forging a new phase of growth, page-35

Sorry about today- I was out watching the serfs polish my crown!!!!

I see you are another person who thinks the market is rational and that it miraculously sets the right price. Which of course is why you agreed with the price of above $1 when it hit that level around two years ago. If your opinion is that price was wrong then there is as much rationale for saying the price is wrong now.

Maybe you are also in the category of people that think there is a direct correlation between the share price and company performance. Now I cant imagine that Petra would have suggested to their clients that this is a solid buy with the intent to mislead them. They said the same thing when the price was 49 cents and again when they did their second report (I can't remember the price ten but it was higher). But of course they don't have a licence to advise the retail sector - maybe because it can sometimes be intensely frustrating trying to help them understand fundamentals. BTW Moelis have consistently had the same view despite the fluctuations in share price.

Just one other little point which you appear to have missed. Management has changed. Nick Clark is no longer there and Gavin is no longer management. The current management have put out on predictive comment - about being cash flow neutral and in fact they confirmed that they have now had two months of being cash flow positive and on track for a third. But of course you may choose to be among those who continue to visit on the current team the "sins" of the past. I understand that but it isn't particularly rational.

So yes my view is that the business is fine. I am also of the view that the share price is not fine. However I don't connect the two and I have no intention of trying to convince you to change your mind.

Must be off - my champagne is calling and one must not keep the butler waiting!

P