enigma, page-4

Thank you JonathanS for your reply to my post. I was beginning to wonder "is there anybody out there?"

I am told the stock vessel has been leased for about $8 million per year but it will be depreciated $8m per year. So the net effect is a positive cash flow of about $8m but zero on the profit account.

I regard the USA "fiscal cliff" as just political theatre. In my view there is no chance the USA Congress will allow these automatic budget cuts because they will put the USA into a serious recession. But I will be pleased when this brinkmanship is over.

I am still of the view the ASB share price is forming a bottom but the situation has been made more difficult by the stupidity of putting Resolution 8 in the Agenda at the upcoming AGM. This resolution seeks shareholder approval to place 10% of shares in addition to the usual 15% facility already allowed.

I understand this resolution is just academic and Austal directors have no plans to raise additional funds. However any suggestion of a share placement invariably puts downward pressure on the share price. I see the share price has already weakened since the announcement just when I was expecting an uptick.

In my opinion the proposed hypothetical 25% placement shows a lack of understanding about the share market and a disregard for the concerns of shareholders. As the share price is at 8 year lows I believe directors would serve shareholders better by looking at a share buyback rather than mention a 25% placement.

I ask all readers to email Austal ([email protected]) asking for Resolution 8 to be removed from the AGM Agenda. Failing that I ask all shareholders to vote NO to this Resolution at the AGM.