The shares weren't driven down further by the sloppy journalistic mistakes, but by the horrific potential dilution for existing holders. It was nice to see CIY fight their corner and highlight the mistakes, but the market was factoring in the potential dilution coming. It again highlighted the fact that cash flow in the parent company and the fund, are tight.
I don't support the idea. It's lazy. They need to hustle and get better communication out there. Anyone noticed that their "In the news" section on their website hasn't been touched since last year? This is despite the fact that they've got two new retirement projects lined up on the Goldie and the Southport Grande Pacific is structurally complete. Where's the Marina Fund? Where's the positives?
Whilst we can sympathise with the directors that the credit crunch and subsequent repayment delays are out of their hands - no one is saying otherwise - I'd like them to explore other possibilities first. I still believe the company will survive - in fact the belief has been boosted further today - but fair dinkum - the sp ain't going north on that announcement. It's frustrating because I know for a fact that funds are still being raised for unlisted mortgage funds, and developers are out there looking for lending.
I tell you what, this year's AGM is gonna be interesting.
CIY Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
