Cloak they are not losing money but if you are on a 6.5PE and in...

Cloak they are not losing money but if you are on a 6.5PE and in fact could be making 11c as you say then is a net price of around 75 to 80c a great one and its only that value on 14 January 2014 when the settlement is made.

This is the proposition:

1.Dont sell and own a business that looks like it can sustain a market cap of $300m anyway earning 11 c and good prospects to grow for a few years at least.

2. Sell with a settlement date in January 2014 and also incur development costs and operational costs of overheads etc from now until then. They had a lot of capital expenses set for the next 6 months as I can glean from the announcements before the sale. This means I get 75c mid January 2014.

Personally the option 1 was a lot better because that opportunity - both risk and reward was what we all invested in. This settlement is going to take over 6 months from first announcement. We can speculate that they have something else in mind but we don't know and the buyer is confidential - what if the buyer is another Chinese bubble.

Really don't like money tied up with no upside - we have very little info but no-one would logically sell at 50c when in 4 months time it should be 75c

PE is irrelevant because 75c after the deal wont generate 11c will it. Too little info for us to really understand the risk reward and future.