Hi Maxan,Tell me, what do you think SOT's SP should be, if...

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