Ann: Launch of Car Rentals for RACV Insurance Customers, page-86

The only way this stock can be turned around is if we see some improvement in cash income or the ability to generate cash income or a reduction in future cash outlays. (Moving towards being cash flow positive)

The last announcement with RACV was useful, but completely ignored by the market. Why? How often do we have hail storms in Melbourne? Not sure, but probably not often. Likely income to be generated from CL8? No idea, but probably not much.

The previous announcement on the new fleet of Peugeot cars. great news, but again ignored by the market. Why? No details as to how the cars will be deployed, when they will produce income for the company and how much will be derived. No idea.

When the market starts to get some positive news about cash generation it will in my opinion turn around. It now becomes a waiting game.

We are completely in the dark between quarterlies as to what is going on. Management are tight lipped with their plans for commercial reasons and don't see it as fruitful for them to spend time knocking out monthly statements when most of their competitors don't.

The only real option we have is to sell out in frustration or wait in hope that things turn around.

My choice is to wait with hope for the following reasons.

- I do not think things are getting any worse as a result of waiting.

- Mobilise must be progressing in the background and could be generating more income than we realize

- There have been some signs of a recent increase in car bookings through information provided by NT on HC. This could improve further with more Peugeot's becoming available.

- We are due to receive a sizable R &D Grant in the June quarter.


My strategy will be to wait and hold and check progress with the next quarterly, paying particular attention to any details on Mobilise.

As far as what else can be done. I just think they need to work a lot harder to get the available vehicles they have out the door. It seems to me that from the vehicles they have available they should have a much higher percentage booked out. Always difficult to judge from a distance but to me this seems their weak point.