the dawn of a new age

It is the delivery that excites isn’t it? Nothing makes Mr David Williams happier than to see a full container load of CMQ products being loaded and DELIVERED to customers – sounds familiar? Similarly, nothing is going to disappoint shareholders more than to see accounts month after month with no sales receipt when the delivered container load was supposedly NOT financed by CMQ and sold under NORMAL commercial terms.

And isn’t it nice of Mr Williams to issue his newsletter hours after the ‘no-frill’ account results?
Let me borrow and modify the phrase from a CMQ dill’s insult of IMU shareholders post at s/s - ” Seems like a desperate last gasp from CMQ before the harsh reality of the actual situation sinks in”.

Yet another ZERO sale receipt. And the CEO BELIEVES CMQ is on track to meet the 30 June covenants and all the Dills are excited. How is the CEO going to be on track when there is NO NEW sale contract worth reporting? EVEN IF in the unlikely event a HUGH sale was signed today, under CMQ’s NORMAL COMMERCIAL TERMS (Container load DELIVERED to client in Oct 05 but no corresponding sale receipts in the account up to the end of Feb 06) containers delivered to clients in Mar/April will not reflect sale receipts up until after the August 06.

Shall we sell Granny’s house to buy CMQ shares on the strength that the CEO’s “believes the company is on track”? On 01Feb the CEO was VERY CONFIDENT MP1 will achieve 100% capacity by the first quarter of 06 as advised last year. And within weeks from 31 Mar, the tune had changed to “…we are now COMFORTABLE that 100% nameplate can be achieved. 100% nameplate now targeted for the 2nd quarter of 2006. And less than 2 weeks later, the tune is lowered to a new treshhold “… we are now SATISFIED that the plant is capable of achieving nameplate …..we expect to achieve nameplate ….LATER THIS YEAR.”

Wouldn’t it be nice for Mr Williams if all shareholders are Warts & Dills wanting to hear and discuss coccidiosis and pretend that the accounts are all rosy? Wait, there is more:
“Due to the delay in GMP approval of our plant until April 05, we were not able to fill this $1.5M order in the time previously requested….. the order and delivery is now scheduled after 1 July 06”. Compare this to what CMQ told shareholders previously:

1) On 20 Apr 05 in announcing the GPM approval –“ CMQ will NOW COMMENCE fulfilling its existing $1.5M sale contract”.
2) On 12 May 05 – “ …whilst commissioning continues on at the plant, we are still able to produce finished product and continue shipment to customers.”
3) On 3 Jun 05 – “With the GMP license for our plant in place we are now focusing on marketing and sales……..Currently we have a sales order for $1.5M”.
4) On 4 Aug 05 in the newsletter – “.. we expect that the $1.5M SA contract signed last year will be fulfilled in the 2nd half of the YEAR.” NOTE this announcement implied 2nd half of the calendar year 2005 or at worst 2nd half of the financial year, ie 1st half of 2006.

And after the 23 Sep announcement of the $1.4M SA contract that was just in time to fulfil the Mizuho sale covenant, not a single word was heard about the $1.5M ground breaking SA sale contract until 5Mar 06. Today we heard the mother of all reasonings - it was due to the delay in GMP approval. Wonder why CMQ kept telling us to expect delivery up until the new $1.4M new sale contract was signed?

Wait, there is more!

On 3 Jun 05, “the company is continuing on its effort to appoint an independent chairman and a new CEO” and
On 5 Mar 06, CMQ was proud to state: “In previous presentations we have referred to a series of goals we were targeting to achieve in the 6 months prior to 30 April 06. PROGRESS ON THESE GOALS : 1) Appointment of Non-executive Chairman. (DONE) “ the ONLY GOAL marked DONE out of 8 goals. Wish CMQ would tell us on 5 Mar that it was a goal targeted to achieve in 6 months prior to30/04/06.

Come on Wart, break out the champagne and celebrate the dawn of the new age of corporate announcements at your beloved company. These must be on par if not more innovative than CMQ under Dr Melrose teaching us that a party commiitting to subscribe to con.bonds in lieu of unsubscribed shares is underwriting the capital raising.