Hi Towie,I dont mind if TOX make acquisitions. I believe the...

Hi Towie,

I dont mind if TOX make acquisitions. I believe the Delvex acquisition has been highly successful. The March qtr EBITDA was 35% higher than the Dec qtr EBITDA and this is largely attributed to the Delvex acuisition.

They purchased Delvex for a mere PE ratio of 5. As long as they can make acquistions in the future which are compatable with their current operational structure and dont pay too much. They should apply the same due diligence used to make the Delvex acquisition for future possible acquisitions. Mind you synergistic benefits associated with the acquisition of Delvex will probably come into fruition moreso in this quarter.

I strongly believe the share price has not kicked on since the release of the quarterly due to the current obsession in the resource sector. Quality stocks such as TOX are not being given the attention they deserve.

I hope TOX do decare a dividend at year end even if it only a small one like 0.3c. With $4 million in the bank at the moment, this should increase to about $5million at year end (after allowing for capital expenditure). The 2005/06 year has been about consolidation for TOX. We will begin to see the real growth in 2006/07 through plant upgrades and more significant acquisitions.

Cheers