re: cnb..no sellers Hi Brunette, thanks for your reply.Brunette,...

re: cnb..no sellers Hi Brunette, thanks for your reply.

Brunette, I think the weightings you place on what you consider important for CNB are incorrect and I have to disagree with your views on it.

Can you explain to me why anyone should pay $1.60 (the current price) given that CNB has a current nta of $1.15? As some of CNB's projects are completed over the next two years the nta will rise to about $1.25 and as the remainder of their current projects are completed over the next six years the nta should rise to about $1.50. Therefore, people today are paying a great deal more than the company projected cash flow years down the track.

Last years results were an exception as CNB completed and sold a number of projects which increased their earnings substantially. The company has stated that this years' results won't matchlast years and as such the p/e ratio will rise substantially and the growth rate and return on assets will fall.

The remuneration of the senior managers is excessive for a comapny with a market cap of about $45 million and I do believe that being in Canberra should be taken into consideration as the cost of living in Canberra is lower than, for example Sydney, and this should be reflected in their wages as it is in other Canberra based companies.

As to irrelevances, the most relevant point when valuing CNB is whether you are paying more for the dicounted value of their projects than they will be worth and I believe at CNB's current price the market has got it wrong. I will be very surprised if the share price manages to stay at these levels in the medium-term once the current share price manipulation on low volumes finishes.

A quick point on the heading for this topic, "no sellers" actually if you take what is on the S.E.A.T.S screen as a guide you could buy 78,000 shares at $1.65 or better whereas if you tried to sell 78,000 shares with the current number of buyers you would push it down to 85c. So in fact there are many more sellers than buyers.

Anyway, if you continue to hold good luck with it, but don't be surprised if the price falls once the current buyers find out the reason they have been buying is not justified.