Ann: Market Update - Contracts, Backlog and Outlook, page-4

With any company debt is the first thing I look at. I am a company managing director, my company has never had debt, industry generally is cyclical some more than others. In a high growth environment debt leverages the profits and vice versa in a downturn.

Listed companies with debt nearly always dilute share holders some to the point of 100% losses to shareholders during downturns. MCE is net debt free, is trading at 50% of net assets and is in a niche (like my own) industry, high barriers to replicate, also a necessary industry, renewals are crap, they will always be a fad and governments are so broke they cannot fund them for much longer.

Land oil is limited, deep water is the future and floating LNG platforms will replace land based ones - all use MCE product. There is lots of upside here but I concentrate on the downside and will not certain is better than most listed companies in this industry