risk reward, page-2

I agree PICKEM, even on a liquidation basis I can't imagine the shares dropping much lower than 1.5 cents,giving a market cap. of $8.9 M. TheCompany's assets, no matter how they are sold,are way over this value.
I understand the Commonwealth has extended their decision date to end of July, so those white knuckles might be drained of blood by then.
The issue of asset value keeps coming back to the costs and obligations that are attached to those assets. (Are they a mid-term liability?) Contrary to some comments, from close examination of the EPA approvals of both the Land -based developments and the Marina/channel,it is clear that there will be significant start up costs that will have to be carried for a considerable time before land sales realise profit.
There are also risks involved for any buy-in,or take-over.
Sections 3.1& 3.2 in Appendix 4 of EPA Report 1420 (Point Grey Marina and Channel, clearly states that there must be written evidence of substantial start up (in this case,of the Marina or Channel) within 5 yrs of the date of signing the EPA document 1420, or the authority lapses. (That was Dec 1st 2011. I would have thought that would have extended up to the conclusion of the approval process by the Commonwealth. But it does not say that!) Therefore this is not a grey area,in that any company taking over does not have the option of choice about starting the Marina and Channel at some approximate future date, based on changing economic circumstances and subsequent development and sales of land based blocks. There is not a hell of a lot of leeway here and I would think that the success of the Marina would in part be dependent upon an pre-established community to support it.( It should not be taken for granted that subsequent re-approval is automatic)
Also section 2.1 of Appendix 4, gives approval to the proponent only. Any transfer of that authority has to be approved by the Minister on advice from the EPA. That also is not a certainty.
So,whereas the share price is not reflective of asset value, there are considerable complexities and risks involved for any developer to realise the value of those assets.
Very hard to read this one!