Fadi, the stock performance (and the chart that is forming) just...

Fadi, the stock performance (and the chart that is forming) just confirms the impending disaster. It merely confirms the rumours and the story.

As for Kohler rating the stock a 'buy', well you might want to read the report in full. This is just blatant misinformation from City Pacific. Kohler merely had CIY listed in a table with a whole bunch of stocks in the ASX 300 that have an apparent high yield. The fact that they said Kohler rated the company as a buy, shows the cracks of desperation appearing.

What the Eureka Report also said was, at the bottom of the relevant table: “In general avoid companies with a lot of debt; this is not a good time to have high gearing.” I note that CIY have announced recently that their gearing has increased 2 to 3-fold in the last 6 months alone??

You should read Andrew West's article with caution. He has been in the stocks game for many years... He is spot on when he says that City Pacific is playing the game “let’s try to survive by doing another deal”. They are just trying to keep up the perception that everything is all well. At best they are desperately looking for an excuse to do another capital raising. This will be treated by the market in the same way that MFS was treated when it said it was going to raise funds “as part of the separation” of the Stella business.

I hope that CIY have still got Babcock & Brown retained to advise them – because they will lead them down the path to a capital raising (ie more fees for them) the same as UBS advised MFS to do.

As for whether this is just ‘fear and greed’ – big deal. Get with the program. That is the nature of modern leveraged markets.

As for their statement that they don't have 'exposure to hedge funds' (18 Dec 07) this is just ridiculous. There is no way for them to know this, and from what I am hearing from my guys in Hong Kong and London, CIY may find out pretty soon just how much ‘exposure to hedge funds’ they really have…

Gutteredsquid, a ‘re-entry point’ may be circa 50c – if it is still around then…