spp mail out, page-27

The reason NMS has held up well is because at the end of the day it is still trading at a p/e multiple lower than 10.0x, notwithstanding the surge in the stock market of late. However, like Cujo, it concerns me that a large chunk of equity has been issued at a price of 50 cents, which is very expensive financing for the company. It would be one thing if they specified what the money being raised was to be used for, but after all this time we still don't know how the proceeds will be applied. Given how lowly geared the company is, I don't understand why they never used debt financing to fund the small US acquisition we are expecting and then raise equity if required on the back of this news and hopefully a positive FY 09 results announcement.