Thanks Spovend, yes makes sense...I'll now have to work out how...

Thanks Spovend, yes makes sense...I'll now have to work out how to post my files on a website to refer things to.

RESULTS:
I now have tox trading on, at 12.5c:
16.6x NORMALISED 2006
9.3x NORMALISED 2007
5.1x NORMALISED 2008

YES, I know they are not paying tax and won't do until 2008.

I have calculated the value of the tax losses at 1.4cps, and allowed for full tax. This is how any fund manager would value them. These are the people who will be buying them in 6 months time once the full year results are out. At that point they'll be looking ahead for the year at the 1.2cps Normalised Net they'll make in 2007 and the 2.2cps Normalised Net they'll make in 2008.

The 2008 figure is the one to concentrate on. This is the one that gives me the cofidence that they'll trade on say 16x earnings on or 34c in Feb 2008.

So it is up to everyone else to decide what a share is worth to them today that's going to be 34c in two years. Some will look at today's result and say that 0.7cps earnings this year is all they'll bank and taht at 12-13c TOX is very fully valued. And by some measures that is very fair.

STOP PRESS:: Have just had a call from Steve. Shall post my analysis. Picture is better: Dep'n $331k, Interest $80k for the 1H.