Acquisitions and rights issue, page-18

Whilst there are some crossovers - From what I understand there is huge scope for a few companies with national footprints and that the astute private company owner is looking to align themselves - So in fact there is still more that could happen to consolidate what seems to be a very fragmented market.

The huge takeout from the article is the business in WA - which is probably hurting in that economy but should still create a platform for growth there. It would be interesting to see how they put this all together.

I think it should command a 20 to 25PE once the market understands the opportunity - So around a $1.00 when all the dust is settled - However that always depends on how many shares get shaken loose - The number of shares in fact more than doubles - I do think that shareholders could have a gripe that the rights are only 1 for 5. Its the one aspect that bothers me - especially with the comment it was 1 for 3 but because there was such a huge appetite for the shares we reduced it to 1 for 5. It was however probably at the request of the underwriters as they are much safer at 1 for 5 having placed the larger amount already.

I think they are doing well and lets hope they keep it up.