houston we may have a problem, page-18

Axe, No short term hope on the sp I reckon. My view is that many of the trades driving the price down are just a matter of creating activity at a low price so that more shares can be obtained with each draw down or by conversion of notes. Also, if the 30 day VWAP gets below .016 this month (as it looks like it will), there may be a significant transfer of notes to shares which will be at .01. (90% of 30 day vwap to the nearest cent).

Where's the bottom? Guess: Depends on who is driving the price fall. If it is a large note holder, the bottom is probably about what the sp is no as there is no point driving it down any further - they still get the conversion at .01 anyway. If it is the GEM financiers stock lending sales, it could go lower.

What's the prospects for the future? Once there have been lots of shares issued at a low price to the new investors and/or noteholders there will not be so much point in their trying to keep the price down - so look for a long term increase in sp then.

Things to watch for: Up to the end of March, expect no increases in the sp above .016 unless some really great news on sales or technical development. If there have not been many note conversions at the end of march, expect the sp to stay low for quite some time until some good news on sales or developments (ie. it wasn't noteholders driving the price down but the financiers stock lending practices which one would expect will continue). If there have been lots of note conversions at the end of march, there may be an initial further drop whilst some profits are taken and then we may get some increases in the sp from trading on expectation of future good news and some spikes on good announcements.

Opinion Only!

Good luck all.