Ann: Completion of Senior Loan Refinancing and Eq, page-22

re: Ann: Completion of Senior Loan Refinancin... I am basing 3.30 on the fact that it will be going ex dividend in the next 45 days and I am hoping that things will calm down in the next 3 months which I classify as short term. It was trading at equivalent to 3.60 at it's last rally before the capital raing and consolidation. I am betting in will get back to there by the ex dividend date at the end of the year.

The previous high return was based partly on the fact that real estate values were falling. This appears to be stabilizing now.

Gearing has also been an issue and will continue to be in the medium term (1 to 3 years) but in that time it will reduce the principal by $20 mill and have retained significant capital that they can get a return on far better than the interest they are paying.

Also the fact that The Gearing is over 70% means that even the slightest increase in valuations will lead to a leveraged increase in the NTA.

I get that it is not a growth stock as such and even though there will challenges in the short to medium term. I am thinking that with 50% gearing available through commsec at 8% and with safety in mind, it could be quite a tidy return with a 3 to 5 year horizon.

In my humble opinion only