somehting not right here, page-36

I think many will be surprised by the lack of sp advancement on the basis of this announcement, particularly management. But that is the market.

Clearly for many the promise of an undisclosed amount of income in 12 months is just too far away. Also, the ditching of the WA plant in favour of a NSW location (closed by Boeing) may appear to take the company backwards. It also casts doubt about the direction the company was headed prior to the JSF. Also, the remarks attributed to the guy from Northrup arent all that inspiring. In the press release he is quoted as saying:

?This LTA gets us a step closer to meeting our F-35 industrial participation commitment to the government of
Australia. We look forward to Quickstep?s involvement in the JSF program, and their production of F-35 composites
subassemblies that will be delivered to our assembly operations in Palmdale, California.?

So the inference I draw from this is that NG didnt select QHL because they were world class competative, they did it cause they have to.

Frankly who cares so long as the contract is a good one and hugely profitable for QHL. But there in lies the unknown. They will have a lease in Sydney, a workforce in excess of 400 and make sales worth an average of about 35 million a year. So, there must be signifcant doubts that this contract will put QHL in the black. But it will provide cashflow and that is crucial for this business.

But clearly the JSF isnt the end of it. They still have their proprietary process - the reason I and many others invested in this business at the float. The important thing is that the company now gets on with its other projects. The danger is that delivering the JSF will distract them from the other more important challenges. But indications are they there are developments in the pipeline. A positive announcement about another development should do wonders for us. The JSF has been on the cards for so long and clearly was already factored into the SP based on what has happened.

I know that most are disappointed with the failure of the share price despite a positive announcement. But over 5 million shares have been traded in 2 days. Previously sales of this volume would have driven the sp back into the low 20s cause there has never been a significant buy side in QHL. So the fact that we sit above last Friday's close is positive (though not as good as we had hoped).