october 13 and all is quiet, page-2

LZ,

The dust is settleing after the takeover bid, so traded volumes will be small for a while now, until news is forthcoming. Behind the scenes tho there is still the issue of the litigation payment apportionment. The directors spoke about finding an indepent arbitor, but have been unable to find anyone who will make a decision suggesting CCI needs to front up for some of the bill. Such a decision would be inviting legal action and the court case showed very clearly the directors and IPFM did not have a legal leg to stand on for their actions in terminating the ex chairman in 2004.

With Campbells now the largest shareholder in the company, and many other sharholders angered at the cost of the actions of the directors, this issue threatens to bite them hard through shareholder action, if no acceptable decision on apportionment can be made soon.

Of course the only acceptable shareholder apportionment would be for Hughes, Birthistle, Murray and IPFM to pay all the costs and CCI to pay nothing. I guess what the directors and IPFM have to consider is whether they would be fully liable if the decision became a matter for the courts to decide under a shareholder class action. if it was to end up going that far they could wind up with the entire bill, and a heap of further legal expenses to pay.

The directors will need to please the shareholders with positive results at the AGM. Lets hope we hear talk of cashflow being strong enough to continue funding capital growth and allowing an interim dividend to be paid. Shareholders do not want to hear talk of capital raisings or share placements after the directors recently called the shareprice grossly inadequate. It's high time this company moved towards obtaining a P/E ratio of 15-20 instead of the paltry 9 times current FY forecast earnings it currently trades at.

Let's hope the board can pull a rabbit out of the hat in November.

Regards,

Cheerful.