stressed seller, page-7

Oriol

I understand your concern re capital raising, while I certainly wouldn't rule it out I see it as less than a 50% chance. I presume the second restructuring announced in December was partly a condition of the banking facility extension and therefore as long as improvement can be shown there would be an effective grace period. The increased leverage announced this week in the half year would of been in plain sight of the bankers prior to the extension.

I am also buying COF for the long term in the belief that earnings will normalise at some point in the medium term.

I share your investment time horizons.

COF has now become a classic turnaround play. Quite happy to have a couple of these in my portfolio whilst the bulk of my holdings are in more stable defensive stocks that offer a bit more clarity of earnings expectations.

I wasn't aware of Mulchay's effort at SUN, nothing annoys me more than a raising that allows non holding institutions first position at the trough. Rights issues are invaribaly the fairest method of introducing new capital.