big volume again today, page-55

JRV

A couple of points:

The QVT deal does have an incentive to list in 2008 since TZ can redeem the notes by placing shares at the IPO at a huge premium to the current ASX price, thereby saving $2.4M in interest and a potential 10% dilution so the exercise is not trivial.

CSNY is underwriting and advising and their term expires mid-Dec. I imagine TZ is accepting of their adviser's advice. Should CS advise them to delay, having already commenced the listing process, then that will have no material effect. The process will be in place and the conclusion of that process being driven by CS and announced to the market will not affect the price in itself however the QVT deal needs to be closely considered.

The number of customer interactions has effectively reached saturation. There is only so much individuals can cope with. TZ have more customers than they know what to do with. It seems to me that it is reaching the stage where entire industry sectors are best left to major allies to take control of. It is often better to receive 20% of a lot than 100% of a little. This is all an embarrassment of riches. There are more than 15 customer interactions leading to POs at the present time, many being placed into developing platforms. Those commitments count as much as a cash deal as far as valuation for IPO is concerned and do not forget that the valuation will be based on earnings reached in 3 years.

The local market may be ignorant of all or most of these factors but their ignorance does not change the underlying value.

Congratulations to TZ on even more good news on Wed but as usual ignorance and ennui reigns supreme. The sooner they leave this backwater of buffoons the better. The definition of an oxymoron is an intelligent Australian financial adviser, or so I have heard :)