takeover prospects, page-7

It is clear that the CIY adjusted NTAB is 21.3 cents per share (NTA $34.6m ) after taking investments in CPK and IPA to their current market price is well in excess of the current market price of only 7 cents per share.

On the face of it the level of debt is acknowledged.But CIY has huge management fees it derrives being funds management $38.2 million and also Financial Services $23.6 million in F/Y 08 totalling $61.8 million pa.

The key driver is that if City Pacific and CP1 continue to follow their asset sales programs which have now recently come back on track including the sale of the Paradise Resort (under negotiation) that would enable them to clear significant amounts of debt. That would then in turn satisfy their financiers.

Yes it is very likely that the situation can be turned around. I am expecting some imminent favourable announcements about some of these highly profitable asset sales.