Hi, i'm a long-time holder (since 2006) holder of TOX and am...

Hi, i'm a long-time holder (since 2006) holder of TOX and am wondering what others are planning on doing with respect to their $10k SPP entitlement offer at $2.00 per share?

I'm a bit divided to be honest - it's at a healthy discount to market price (currently $2.15) so there's potential for a short-term gain by subscribing, and i have faith in the longer term performance of the company.

However, the last few years haven't been great. Let's look at a few numbers:
- From FY09-FY11, the company invested roughly $93m in itself ($64m capex, and $29m build up in working capital). Over that time, NPAT has grown by a measly $4.2m - that's a return of roughly 5%.
- The more appropriate measure of value creation, NOPLAT, was actually very negative in FY09-FY10 due to the huge capex spending & working cap build-up. In FY11, the company finally returned about $2.4m NOPLAT - that's still way too low.
- ROE has fallen over the last few years from high teens/low twenties, to 12%. Unless there is a significant pay-off over the next few years from the capex spend of 09-11, management will have destroyed value.

What are the plans of others? Management need to substantially improve their management of capital in my view...they could start with recitfying the working capital imbalance in the business, where there's $36m of receivables and $15m of payables. There's too much cash tied up in this business for too little return at the moment.