costs of split?, page-2

OK Higginss, I'll address your post number one with saying I am not an SI, maybe a "suckered investor" but certainly not a sophisticated one. Will I get my shares in the placement, well I can only hope that all this negativity continues and I can get my full $15k allocation, otherwise I wish I had a rights issue that at least allowed me to top up enough at that price of 24c. Though I think after the SI's get their allocation in the days to come we might get a chance at that as they sell for 10% profits etc.

Now to address TonyW who I had asked on previous threads to let me know where he thought I was backing management for no good reason, even though I had said I agreed with many others here. Tony you made an accusation towards me today on another stocks thread that was not at all called for as I think I have delivered both the good and bad sides to this investment in ACL and have not just stuck to the only positive. As I said there, if you want to meet up I will be at the AGM, let's flesh it out there if you want.

I'm going to try and explain my thoughts as some have asked and will do it in the best form I know how, question form. This is purely because these are the same questions I have asked myself in recent times.

Before leading into this I'm going to say that if anyone thinks I don't feel the same pain then they are truly mistaken, I have lost bucket loads on ACL since the highs and am only granted a small pass due to investing early at 12c, though my average is now at 34c my peak investment was once worth $100's of thousands more than it is now. Not that crash hot when you have to tell the boss that we have to wait on the renovations we had planned:(

Anyway my breakdown on what is now compared to what might have been:

1. My initial thought along with everyone else was that we were going to be getting some form of "low interest" loan to forward the phase 3 trials, whoa was I happy to hear this. We could pay back a minimal amount on the loan and start collecting Fonda revenue until the HA-Irinotecan trials came through and sorted all this out.

- My back-of-mind niggle was "what if the PH3 didn't work out? Well, in my mind, who cared that would come years down the track.

2. Fonda earnings will pay for the full phase 3 trials and we are on our way. Again, this thought that what if we don't pass phase 3 kept entering but personally I thought I could get out before anything turned bad.

If this was what (as I see most posters saying they thought) was going to happen then what would we value a company that is going to sink all earnings into a phase 3 trial that may or may not be successful?

3. Here we are now, granted it seems a management that has been steered by their larger shareholders, but a management trying to do what they can to progress a pipeline that seemed inevitable to be stalled for a very long time due to some self interests. Let me point out right now that yes a raising a year ago could have fixed this but I know personally I wasn't wanting that until they did Fonda and most if they checked their own postings were agreeing.

Anyway, what do I think for the now. Well although I don't like that I have or will be diluted a bit out of HA-I I know that I can can get more shares if need be, obviously if this goes behind what we will already be allocated. As for the ACL fonda company we get around $13 - $20m to share around yoy, increase that in 2 years once Euro/ROW opens up.

So, in the current environment and with what we have been dealt, I think that the split could unlock some shorter term values simply due to the fact that Fonda wont be used to fund HA-I and an actual value may have to be applied to both opportunities rather than the market seeing one paying for the "Potential" of the other. I guess that is what the majors were asking for after all these years?

I don't feel the need to add to any of what has been going on lately simply due to the fact that I don't need it in my life, I invest and sometimes I lose, I move on so very quickly and hunt down that next one I often forget the one before. Though if you throw me in front of ACL now I would be highly interested simply due to the absolute negativity and opportunity it may bring, seen this many times before. To me this is the bottom floor, skip along and consolidate for a while and then head to where your meant to go, each investor must make up their minds where that may be:)


No spell check, all my own thoughts, do your own thing:)