close the fund down, page-3

Austravel,

I'm not aware of any other LIC that is within the same space as CTN. WAM buys small cap stocks, but have had little success and they have now cut their distribution. I hold LRF which is a pure small cap resource LIC, they've been torched and with such a large holding in Atlas may come under further pressure.

If you are going to own a small/micro-cap sector LIC, you'd probably want to be with CTN, I know they've been hammered and members are frustrated, but markets turn quickly and David Stevens and Carol Austin would be taking advantage of stocks at rock bottom prices. They are holding $22m in the kitty and the directors through their private company have picked up a million shares in the past months at roughly $1 a pop.

The sp is currently 58 cents, and with an approximate NTA for October of $1.05 its still running at a discount of 40%+.

A colleague reminded me that a large proportion of shareholders margin loaned against their holdings during the rights issue, its possible they are having margin calls placed and thus CTN being sold off (IMO).

Regards
P