doomsdayers, page-7

I note the contract does not have a fixed term and that there is a "payout" on "change of control". Probably shouldn't read too much in to this as I think it is standard on a typical management contract.

Also I am not sure as to the success of their land sales to date (gues we'll find out in August). Everyone is reporting that they have not or will not be able to sell land. I don't know where this info is coming from??? Does someone have mail on this???? Also, I know valuers are being rather conservative with valuations on rural land at this point (due to GFC). This seems to indicate to me that they may be able to sell close to land valuations if the land is in the right area. I must admit I am surprised the valuations have not come off since last year. This could be due to FEA's history of good site selection?

While there may be a lot of land coming onto the market (depending on the outcome of what happens to Timbercorp and Great Southern assets), I know most TIM land is not in Tassie or northern NSW. Great southern does have land holdings in Tassie, although I am told (this is hearsay I must admit) the land generally is not as valuable. So I would be surprised out of the $50 mill land that they want to sell and lease back, if none was sold at fair prices. Another $10-$20 mill could ease cash flow concerns in the short term.

Also I not the cash position improved since December by $7 mill. Anyone know how this was done?