Rosencrantz,"were a Corporations Act -Section 249 meeting of...

Rosencrantz,

"were a Corporations Act -Section 249 meeting of shareholders to be convened ..would you, GPASAS nominate as a director ?"

I don't think that I am your man. I did stand for a public board last year to stir the board and the shareholders. I strongly believe that we need experienced shareholders on boards, particularly troubled boards, rather than just lawyers, accountants and their mates. Boards such as this one, with their miniscule financial involvement, don't think as we do. As you suggested this is the type of Board that would just have a 1 for 10 restructure without worrying about the shareholder consequences. Even worse, they would likely follow it up with placements and a 3 for 1 rights issue underwritten by outsiders at a fraction of the market price destroying the assets of those existing shareholders unable to take it up. There is too much of that, and a large shareholder on the board would be much more inclined to find a buyer for the company or sell up some of those undervalued assets rather than destroy the funds of the existing shareholders. A director with decent funds at risk would put more focus on doing the best he could for the existing shareholders whereas many directors with little money involved focus more on maintaining their directorships and getting their $134,000.

That said though, I haven't been in this company long and I don't know the history of the company particularly well. I don't have board experience (nor, unfortunately do many professional shareholders) and I don't think I would be the right one. But the idea is good just the same.

Catching falling knives is what I concentrate on because those who take that approach, have the game to themselves. Yes, it has its occasional disasters such as Henry Walker and a few of the wine companies but it also has its wonderful winners. In February and March of 2009, I bought Forge at 21c, Bradken at 96c, Macpherson at 27.5c and Emeco at 23c. Within a month or two, the GFC was behind me. That is what I aim to do again this time. I should point out at that same time I bought Cockatoo Ridge and lost the lot. Yes, there will be mistakes again this time and maybe PPX will be one of them but hopefully there will be a Forge or two in there as well. Forge and Macphersons were selling at price earning ratios close to 1 (on forecast profits too, not historic ones) at that time, yet nobody wanted them. Years later brokers everywhere were recommending Forge at $6.

Now is the time to be looking for those Forges and I am happy to have Paperlinx in the mix.

GPASAS