half yearly report, page-13

The company has produced a great turnaround over the last 6 months but I think the market wants to see the turnaround consolidated for another 5-6 months before we see a dramatic improvement in the share price.

TOX were incurring decent losses before the turnaround began at the beginning of the year so that is going to be at the back of most people's minds. There will be some scepticism until a full year's profit is made.

Having said that, I believe in turnaround stories and what I have seen in the last six months and what direction I can see TOX heading in the future, I have seen enough to induce me into buying now before it really gathers momentum.

Based on the first six months profit, it is heavily undervalued. If it can produce another six months of similar growth, the share price will be trading at a much higher P/E ratio from 4 to perhaps 20, one that I am sure will take into consideration the growth that the company has produced during 2005.

I topped up on some more oppies at 2c seconds before close and intend holding them until near expiry.

Cheers