I have been holding and accumulating Centrex shares for nearly 3...

I have been holding and accumulating Centrex shares for nearly 3 years now. The long term prospects of the company have always looked promising, especially the magnetite resource.

The recent steady drop in SP has motivated me to read through recent announcements of not only Centrex, but also of companies with adjacent leases. The SP drop may be due to global economics or it may be due to something more local.

What I do know is that the SP has dropped since the board reshuffle. This could be coincidental or there could be more changes planned for the company and therefore more uncertainty. I wouldn't want to be in Gerard Anderson's shoes right now. It is possible that the market doesn't like this.

I also know that there is usually a significant change to the Centrex's SP before a major announcement is due. This happens to other companies too. But it always seems to happen to Centrex. There are at least two announcements due to be released soon.

One is regarding the drilling results at Cockabidnie. Remember, the rock chip samples looked very good.

Another announcement will be about the final signing with WISCO on the magnetite and Sheep Hill Port deal. I know that WISCO wanted assurances that Lincoln Minerals would not attempt to make claims to the iron ore which is located on the leases which are shared between Centrex and Lincoln Minerals (LML). LML have given verbal assurances that they do not have any claims to the iron ore, but there needs to be something in writing. The written agreement may have happened by now, but I am not aware of this.

LML are now in discussions with some company about being either taken over or at the very least a new major shareholder. An Indian company already owns 40% of LML. So it's possible that this company may want to buy more of LML. I obviously don't know of any details of any takeover negotiations involving LML, but there are some interesting Hot Copper posts worth reading. If there is a new major shareholder or a takeover, then this could change any agreements between Centrex and LML. WISCO won't like this. If (a big if) this all ends up in court, the decision may well go in Centex's favour. But even a successful court action causes delays and uncertainty.

Additionally, Onesteel announced this week that they are considering a plan to build a multi-access port at Whyalla to cater for Panamax size ships. There will be a surplus capacity of 8MT per annum, which will be available to other users. It will take about two years to assess all of the development options before making a decision, so nothing will happen quickly, if it happens at all. But if the port does go ahead, it will reduce the number of potential users for Centrex's multi-user Sheep Hill Port which is about 200KM away.

Any one of the above issues in itself is not an insurmountable problem for Centrex. But put them together and this is a big problem. This may explain the steady drop in SP, albeit on low volumes.

I may be wrong with all of my assumptions and it was pleasing to see a SP rise of about 3 cents over the last two days. As much as I love the Centrex story, I have decided to put my emotions aside and sold my holding yesterday.

Good luck to all holders