Hi Tebley,Let me give you my thoughts on your points in the same...

Hi Tebley,

Let me give you my thoughts on your points in the same order.

1. I agree that at first glance, this is a large sum for a company that is not Ebitda positive yet.

However, I think there are some points that need to be raised in this context, before opinions are formed.

Firstly, remember that the Directors did not get much of this sum (A$20k each approx.).

Secondly it would seem the company was (2001) in a position where it had great contracts and positioning in its markets, and needed an experianced telco management team to fully utilise these assets, and set up the current Eurasian model. They hired Mark Stewart (and his team), and like it or not, it cannot be denied there has been very positive trend emerging in revenue growth since he came on board.

Thirdly, remember that Mark Stewart is based in the UK for commercial reasons. His package therefore is in sterling. Combined with the average cost of executive renumeration being higher there than in Australia (generally), I think you have another contributing factor.

You may or may not agree with my logic here, but on the bright side, I cannot see this figure going any higher, and therefore becoming a smaller percentage of costs over time.

As for continually failing to meet its own statements, I agree that they have screwed up over the last two (revenue and EBITDA) but please see my post above.

2. The English directors (Stewart and Mittens) hold performance based options in the company which should see them gain reasonable shareholding upon completion of performance targets. Look back over previous announcements, and you will see that these targets are not a gimmee. I think Stewart was up for 7 million odd over 4-5 years.

I also believe that you will see the members of the baord buying on market soon, if the shareprice continues as it is.

In terms of 'huge unrealised losses' I presume you are referring to last years numbers. These, by definition are realised. I agree they look crap, but at least a large amount was goodwill writeoff, and other housekeeping amounts.

3. I did not mean that there would be completion at the end month. I meant that I thought they would have a financing arangement with a leading instituion by the end of the month. The process then is for all of the deal (numbers, structure, due dilligence, finance terms, colour of Palermos tie) to be put in a notice of meeting. This is sent to shareholders. 28 days later we have a vote.

4. I agree that they missed there targets which was stupid. They must have genuinely believed they would get there, and they have quoted a fore majure reason for why they did not.

However, you cannot say that a 70% increase from June is a minimal increase. Idiots at the helm or not, that is a good number.

5. I think that it is another example of great operational nous and very simplistic (to put it nicely) communications skills. They will not proceed with any of the structual ideas mentioned (dual listing etc) until FNT is completed. They know that it is very musch one step at a time. I am not aware of plans to buy any more businesses. The only placements I know of that are planned are in regards to FNT, and shareholders will vote on that anyway.

6. In regards to Perth, I completely agree with you. I think that it needs to be bought up at the AGM. I would imagine that presuming FNT is done, ASX realtions, corporate compiance and structual skills etc will not be required and a more strategic board with a telco skill set will be appointed. We do need to get them to commit to something like this though.

Overall, I think that the trends that are occuring speak for themselves. Give them this qtr and I believe they will be repeated financially. However, communiaction to shareholders is bad, board representation can be improved etc. Either they don't care, because they know things are going to go so well, or are not aware of the problem, because the people in Perth (not London) have their heads in the sand. I think it is a little of both. However, I am not selling as it is better to have a company with decent strategic opportunity and a mediocre board than vice versa. Especially at 20c.

Hope this helps.