new research report out next week, page-19

Thanks Loftus - I appreciate your comments. I'd personally say that in general the CFE threads on hotcopper are of very high standard compared to most other threads and think there are some very savvy investors around here.

I'm not a financial adviser currently but am working towards paying off my house and having enough free cashflow to quit my fulltime job and become a professional investor, but aren't there yet... so am still effectively a *mug punter* and learn more from each and every post i read.

I originally attended quite a few investment seminars etc. From these I have developed certain investment rules which i apply when buying shares which i tend to stick to fairly rigidly. I am only currently invested in 6 stocks.

I initially based my investment style on my own version of the lincoln indicators golden rules:

http://www.lincolnindicators.com.au/StockMarketSoftware/GoldenRules

But around a year ago i modified these rules to my own rules.

However, if you do apply the original lincoln rules to the CFE model then you can see where i believe CFE is now.

Rule 1. Financial health (TICK). - Cash in bank / no debt.
Rule 2. Management (TICK). - TS is at the helm with serious investment - need i say more.
Rule 3. Share Price value (TICK) - I believe its cheap.
Rule 4. Liquidity (NEUTRAL). - Up until the recent buyback CFE had great liquidity and now based on my current investment it would struggle a little with this rule.
Rule 5. Share price sentiment (CROSS) - Currently needs a reversal pattern.
Rule 6. Market Cap (TICK)
Rule 7. Principal Activities (TICK)
Rule 8. News Flow. (TICK). - CFE news flow is exceptional. Only four times in last 18 months have they gone > 10 trading days without an announcement of sorts.

So only *sentiment* and *liquidity* concern me with CFE currently, but am not overly worried as i've researched everything as well as i can and institution sell downs are bound to happen from time to time.

I personally like to add "Recent director buys" and "Positive Future Cashflow" and "Debt level" as seperate assessable company attributes and also assess the "likelihood of a future capital raising/share dilution" based on research/analysis. I also won't invest in a company who don't respond to emails/phone calls as we after all own a portion of the company. Equally i don't harass company's on a daily basis, but around once a month is fair to all.


Good luck to us all :)