Ann: CBD AND CHINA PARTNERS ESTABLISH AUSCHINA EN, page-8

re: Ann: CBD AND CHINA PARTNERS ESTABLISH AUS... I can't stand it any longer!
I've been waiting for the sp to get back down to 13c or so to top up on CBD shares. But this is just looking too positive, I've just gone in and got more at 17.5c.

Meanwhile, what are the profit implications for this China deal? On current prices, 17.5c is fair to slightly overvalued based on profit for 2010 year. This deal must increase the profit of CBD over the next few years, and there is no necesity for mega capital raisings (which would dilute our holdings), given that the deal comes with funding, or so they say.

After the proposed A$3B is spent, there will be some going to CBDs bottem line - even 1%, a low profit take, would be $10M each year - that would double the current profit and make the current sp look cheap.

Glad I did that.