Ann: China JV Update, page-10

I'm sorry but I confess that I was partly to blame today as I sold two parcels of CMP today one for 25,000 share and the other 30,000. I do think CMP is good for the long term but felt that my other stocks have better potential. If we take the mid point profit guidance of $4.5m NPAT, the EPS is at 2.5cps which at $0.35 equates to a PE of 14x. There are stocks right now trading at a forward PE of 3-4x, and with CMP being one of the more expensive shares I decided to sell out. Unfortunately, it happened with then overall market was spooked by the 2.4% correction. I was waiting on the news of the China JV before making a final decision and when it came back negative it was my signal to sell. Also it is such a thinly traded stock. My experience is that with bad news stocks can fall a lot further and it is better to sell quickly than wait. To be honest though, it has fallen less than I expected. Good luck to you long term holders. It seems to have good long term prospects.