COO volume today, page-5

Seems to be continuing a trend of holders prepared to sell out in the 15 to 16 cent range around dividend time. Over the last couple of years it has been possible for these share holders to sell and make an easy trading profit of a few cents (representing about 30 - 40% pa profit before tax) as it has been easy to buy back in 2 - 3 cents lower at other times post dividends. This will have produced far better returns than holding continuously and just taking the dividend yield.

The question to ask those who are selling and hoping to buy back later. Will this trend and opportunity continue? I doubt it for several substantial reasons.

Clearly we have seen a far greater level of support in the up trend to 15 cents than in previous years. Some 30 million shares in this tightly held stock (represented by the high % held by the top 20 holders) have been traded since the low points early in the year. I am not a chartist but since February the chart looks on a solid up trend with first building a solid support base at 12.5 cents then more recently one at 14.5 - 15 cents.

In addition the Board that is now in place are clearly there to grow the company. The previous Board and CEO did a great job in consolidating the business and building a stronger balance sheet with no debt and cash in the bank. But now it is the time to leverage into growth with some prudent acquisition(s).

Soon, in addition to announcements concerning 14/15 financial year we will hear some important news regarding growth drivers for 15/16 and beyond. Interesting times ahead.