23.5, page-2

Ok... forget Margaret river and rotto. Anyone close to the board and company will now know that the only decent jobs tempo has been bidding on have gone to other companies..... ... I was also told that the new shareholder isn't happy as the picture isn't what was presented 6 months ago in terms of prospects... Lucky they have $24M in the bank....

nearly all the staff have been made redundant as there are no immediate contract awards, the only people remaining are focusing now on acquisitions and coincides with the appointment of an acquisition manager and only 1 estimator left in the business.

Again, you can hardly argue with $24M in the bank and a great couple of years - however -  why the heck haven't we heard from the company on the dwindling pipeline...

With $24M in the bank the company is strong, however with NO pipeline all we have now is a cash box irrespective of what the new investor can bring in.

Point to all of this-  is if they have no tangible pipeline, then when acquiring something it would be difficult to make an acquisition through shares at a premium- cash backing per share I equate to around 10 cents per share... also, if they pay cash to acquire something how much of a premium/multiple will it be at- at the very least you would think 3x or 3 years to recover the investment....

The negatives here are actually positives - I think the price will float down below 20c.... this however will give some good positive upside if you believe in management and the new shareholders- with 24M in the bank, it doesn't matter if things don't come back till 2018... All boils down to can the CEO deliver over the next 8 months, however from the rumblings I heard amongst the brokers who cover the stock and from the board themselves (perth is small - its amazing what you can overhear at coffee shops on the terrace)- perhaps there may be a change soon.

good luck and hopefully there is a good buying opportunity soon. Also, I am out now (not too disappointed) as average sale still respectable..