great result & dividends are back!, page-5

petepan,

My view on the recovery is based on the liquidators report.

1. The liquidator advised that the Bank will be paid in full and that CMI Ltd being the next Secured Creditor will ba paid something.

2. If you offset the banks debt against cash and Debtors there is some funds left and then assume you get 20c in the $1 for the fixed assets and say 50% of the value of the New Zealand business you end up with anything between $5m to $10m

3. most liquidations are 6 months if there is no money left, if it goes on for longer the liquidators is really just milking the funds for fees. This may be whats happening now.

4. The business states that it recieved $186k and is treating this as a liability on the balance sheet??? dont know how but, this would tell me there is more coming in since the liquidation hasnt finished as yet.

As for teh big shareholder wanting shopping money, I dont this she has a problem with cash because she only recently spent I think it was $12m (could have been more) buying a property in Sydney!

My view the board wanst to edge the dividend up progressively as it shows growth, and when something shows consitant growth it is usually valued at a higher multiple!

I believe the board is in the Value creation mode. Having said that they well use the cash to make an acquisition which in turn will create value and keep the small dividend growing.