Greenguage,No collapse IMO, not sure why you would say that?Many...

Greenguage,

No collapse IMO, not sure why you would say that?

Many of BTC's investments are in up an coming companies/products that are not listed yet, e.g. those companies like Sensear for example.

These unlisted companies like Sensear, are currently working their particular markets to generate further sales and profits before they either get brought out e.g. by a larger competing company or interested party. Or they simply get themselves into a solid financial position after generating strong sales revenue/growth with a recurring revenue stream, and then list on the ASX.

Sensear is using Trade shows coming up in the US and Germany to launch a number of new products to expand its range of smart communication devices in late 2009. New products include the SM and SP devices that provide face to face high noise communication and due to customer demand Sensear will be launching the ‘round the neck’ version of its popular SM1 Smart Ear Muff Series.

Innovation and new product development are the key to strong future sales growth for any company. Sensears range of new products will be on display at the Trade Shows in late Oct 09 and early Nov 09 and they will have a large impact on the hearing protection and communication market.

Also, there is new Tax concessions available to companies involved in R&D. Sensear is 100% based on R&D.

Now here is the great news about the new Tax concessions:

The new R&D Tax concession incentive which incorporates a wide range of options include employee salary related Tax concessions and much more with regard to R&D development.

The R&D Tax Concession effective Oct 09, is the Australian Government’s main incentive to increase industry’s research and development. Companies which have incurred eligible R&D expenditure can claim either a 125% deduction or, under certain circumstances, a tax offset for small companies or a 175% premium deduction.

The concession is an ongoing scheme. It is broad-based, market-driven and not industry specific, with the company deciding upon the scope and timing of the R&D.

The way it has been explained to me by KPMG Accounting, is like this:

We will use Sensear as an example, because Sensear is mostly an R&D company, and lets say they spend 4 million dollars on R&D, they could ultimately claim back 45% of their expenditure e.g. around 2 million dollars in R&D Tax concessions.

However, they need to have a 20 million turnover to claim back 45 cents in the dollar. In 2010/2011, the Government and the ATO have not set an R&D spend cap. This is great news.

R&D concessions for turnover under 20 million are still attractive for companies like Sensear. "not sure what their turn over is"

So this is another plus for BTC who have previously invested 2 million in Sensear. The new Tax incentive is going to give many e.g. technology based companies a huge head start and the availability of cash flow from the new tax concessions.

Don't worry mate, IMO this share price will move up soon.