concerns vs confidence, page-15

totallyunfit, yes its an interesting aside here, but back in the glory days, pre-GFC, risk did not get the value ascribed to assets as it does now.

Ratings agencies are being castigated now for valueing companies at investment grade that were nothing more than a house of cards (ie) Lehman, AIG, Citi.

Analysts are now the new real estate agents or corporte recruiting companies of the latter part of this decade. Very low in the food chain, indeed.

Risk is front and centre in the investment communities minds and despite the fact that the market is up considerably in the last 6 months, SDL included, the SDL project has not yet had any de-risking to speak of.

The risks are - no cornerstone financial backer/offtaker (other than the recent capital raising which was offerred to international instos), no offtake agreement, plus we've been sent back to drill for more IO (which will take 4-6 months to bear fruit). Then there is construction risk for the railway and the port. All very significant and really bite into a speccies valuation despite what the in-ground value of the resource might be.

Until there are more resource upgrades, I expect SDL SP will not do anything. Although a resource upgrade will probably coincide with a partner announcement. Then, and only then will SDL be off.

Deutsch is pointing SDL down a different path of opening up its register to the international investment community, which is a very good thing. SDL management did not have an international slant in its MO other than exploiting GJ's international contacts. So I like this development very much.

I personally am not going to invest in the SPP, and really where it is priced, another $5m will merely be a drop in the $85m ocean. It will only give further dilution because you can already buy it at $0.15.

I am holding on, but have lightened my holding a couple of months ago and invested elsewhere.