Ann: Net Tangible Asset Backing, page-6

I spoke with a fella at the company a couple of months ago, his job is to talk to shareholders or prospective shareholders and he welcomes phone calls. I remember him saying that they want to close the gap between nta and share price; I think that the company would see that fully franked dividends are an important part of achieving that goal. but whether that is something they can/will do in the near future I don't know. I really wanted to be exposed to the small cap sector as I felt like the bluest of blue chips were pretty fully valued, eg the banks, telstra etc. So ctn suit my needs and are a sort of conservative "punt" in some respects. with ctn I feel like I get potential growth with a bit less volatility than if I owned just a few of these potentially volatile small cap companies.

the thing I hate about LICs is the way that most of them raise capital. the capital raising nearly always knocks the shareprice around for weeks or months as people sell shares to take up the new ones offered. Or they give away some of your money by selling shares at a discount to "sophisticated investors". CTN understand that this is something shareholders hate so they have tried to grow their business by starting up a new LIC ctn dividend or something, obviously the ctn management company makes money out of this, but that company is owned by ctn microcap, so the benefits flow to shareholders in a sense...... it might be a good idea to check some of these facts. this is to the best of my knowledge correct but I am a bit of an amateur at this game. good luck.