upgrading cix to strong buy, page-7

Kit,

Many thanks for your breakup value calcs - it's good(and rare) to see someone not afraid to crunch the numbers.
In addition to your 58 cents per share valuation there appears to be two sweeteners to any takeover activity in this stock. Calliden has $234million in unused losses which would be worth around $70 million to someone who could use them -although there are some restrictions on their use by any company acquiring Calliden. And there is $26million in franking credits available.
The current $55million market cap puts the figures in perspective - no wonder all the long term holders have been stacking up. Hunter Hall, CBA, Celeste (the old Souls funds management) have all be buying up the HGL selldown (who are exiting their listed investments) and Greencape Capital has also joined the party.

Apart from a quick takeover buck the ideal situation for shareholders is if Calliden returns some of their excess capital to shareholders by way of a franked dividend. They then start to make some profit on their insurance book (which would all be tax-free) and return more cash and franking credits to shareholders.