what's holding sp down?, page-3

Hi 2ic

Thanks for your views.

In my view, the funding gap coming up in 2009 will be a big clean up of weaker companies. Companies with solid fundamentals should be ok though. The banks and govt are very aware of this impending problem. Fortunately, the govt guarantee will mean that our banks can source international funding with a triple A rating. NAB and CBA had no problems raising funds recently. Hopefully that is a good sign of things to come.

Based on a risk/return equation, I think 26 cents is a good medium term buy. I believe that once the CBMS has been successfully refinanced, the share price will head north. This is of course not a certainty but I'm comfortable with the risk.

Stress testing the gearing levels with asset write downs also looks ok. However, I'm not sure what the debt covenants are.

Anyway, I went in and took a bite today at 26.5 cents. Will look at the sp again in 6 months time.

Thanks again for your comments.