Why Candy Club is a buy, page-146

Hi TEP

I too look forward to your thoughts. I have been a CLB skeptic since the float and down to $0.03 and now back up to $0.16.

Other than the fact that James Baillieu is a smart cookie with long pockets, is prepared to support his investment and an ever increasing script hoard from the 3 cap rises over 2 years (in addition to the original $8m float) last quarter the company still had -US$.1.9m OCF.

I am guessing a OPC for Q4 of -US$1m on sales of $US2.5m. I seem to recall these was once a suggestion that CLB would be CF positive by the end of this year.

When I have occasionally posted my disbelief in the past, holders have been kind enough not to tell me to take a running jump but have shared their thoughts, the only one of which resonated with me being that someone will acquire the customer base.

So as a new chum here I'd be interested in your thoughts. Obviously you have reached a different conclusion to mine but the longer I am wrong about this share, the harder I look for a compelling investment thesis.

Look forward to your take.