By way of follow-up comment, I note that Celeste Funds Management has issued a Becoming Substantial Shareholder notice for COF. I happen to know the Celeste people well. This is the funds management business that was owned by the Washington H. Soul Pattinson Group but sold to ASX-listed Treasury Group late in 2009. The small cap fund is run a by a guy by the name of Frank Villante, an ex Bankers Trust veteran. Celeste are highly respected and disciplined value investors. They have been long-time investors in COF, having added to their COF holding in January and February this year (refer to their website http://www.celestefunds.com.au and click on "Offer Documents and Reports" and then on the January and February reports for the Celeste Australian Small Cap Fund). Back then the share price was around $2.20. So I guess they believe that if there is value in the stock at $2.20, there sure must be at $1.10. I also notice that they bought AAX at the same time, but have since exited the position (refer to Celeste's June monthly report). It looks to me like they exited their AAX position and tipped it into COF, which doesn't surprise me as COF is by far the better generator of Free Cash Flow than AAX, even though they are ostensibly similar companies. (As an aside, I notice that Celeste has also sold reduced its holding in IT Services company ASG Group [ASX code ASZ.AX]. For more details on this refer to my posting earlier this afternoon under the ASZ stock heading)
COF Price at posting:
$1.05 Sentiment: LT Buy Disclosure: Held
