give up, page-12

Hi Maxan,

Tell me, what do you think SOT's SP should be, if iiNet's SP is your guide to relative valuation?

To be fair on the div thing - they did pay out a biggie a few months back, and I personally didn't expect one for FY, though it would have been very welcome.

My take on it is, the market doesn't trust SOT yet. Because, it was a bit of a cot-case, as we now can see, and they have no idea about Teoh. He will have to earn his credibilty from the general investment world.

I have dealt with Teoh's businesses since he kicked off in the mid 80s, and regard him to be very clever, have wonderful forward thinking, and to be a pretty straight player; A good business builder. He screws costs very low too, and I hear he is still in worker-holic mode, working late nights and weekends. Sure he optimised the SOT deal for himself, as I would expect, and he forced SOT to buy Chariot which was his original float plan. SOT would have been better off without it IMO. However, I am confinced that his interests are now firmly aligned with those of SOT shareholders, of which I am one.

My only reservation is that Teoh is new to public company life and may take time to adjust. In his frugal mode, he may regard divs as inefficient cash out-flows and he will need to learn otherwise.

You would do well to communicate your feelings on the div subject to him, IMO.

I like your analysis Relaxan and think our patience will pay off. In fact I can't see how it wouldn't. I am not in this thing for just a cent here or there, and don't mind the short-term battering. In this market there's plenty of that!!!!

S