Greetings.The end of the first page of the announcement also...

Greetings.

The end of the first page of the announcement also notes that the buyback will be funded from cash reserves. Network Investment Holdings doesn't even have to outlay any cash!

I wonder what the independent expert will of the value of the company if the best use of its reserves is to buy out the minorities - 42% of the shareholding.

Employee costs as a % of revenue have come down from 50-70% in FY07 to 34% now, and cash receipts as % of revenue look quite good.

With a 5% revenue growth assumption and holding costs constant I can get an EBIT next year of $1.126m while still Op Cash positive.

Leaving cash where it is now ($4.643m (not 4643m below(ooops, apols))) and using an ebit mutiple of say 5x, that says value of the Company is

12m shares into 1.12x5 + 4.6m = $10.2m fair value around $0.85.

$0.70 is a 20% discount.

Need to do a little more work, as this is a selective buy back, of which the minorities are the beneficiaries. Unlike other transactions, Network is not conflicted/excluded from the main vote. The vote of a person benefiting(us) cannot be counted, but the class of persons affected (us) have to agree.

Is there value in getting a shareholders list and writing to shareholders demanding a no vote for a higher offer?

f111