Hi Betman, presume your Graeme is me???Sorry for delay, been...

Hi Betman, presume your Graeme is me???

Sorry for delay, been tied up lately on other issues & left my CTN "itch" alone for a bit. Did get a (lame) response from DS & I thought I had posted it but in case not find it below.

Would be happy to chat offline; how do we contact each other?

Also interested in how many others support our view of winding up co and getting an immediate return of up to 50%???? please post responses.

Out of interest I have also just posted a chart of ctns's less that glamorous performance (refer Post #: 5125899)


CTN RESPONSE BELOW:
Hello Graham,



Thank you for your note.

I think the first point in my letter to you covers the discount to premium history of CTN and its relativity to other LICs well.

Certainly the current period to which you refer to is different to the long run position for both markets and CTN. The discount for both have been elevated due to the GFC, and more specifically for CTN the SPP has held the stock price back( which happens with all companies raising capital).

I consider the current period to be unrepresentative of the longer term.

Whilst micro cap companies show outstanding relative growth to large companies they deserve the markets support. We are unashamed supporters to this important growth engine for the Australian economy that provides major employment opportunities product and service strength and high profitability dividends and growth to its shareholders. Currently due to the same issues impacting our share price as is impacting on the valuation of share in the micro cap sector. Thereby making them very attractive acquisitions and that is why we have determined to undertake a raising as we can acquire micro securities on larger discounts thereby benefiting our shareholders more than a buy back. I have pointed out that should CTN trade at a larger discount than the micro cap securities then we would implement the buyback provisions as we did last year.

I believe that in an relatively illiquid sector the closed end fund approach is much better for shareholders despite heightened discounts during events of significant stress. The holders of frozen and collapsed trusts would certainly agree.

I hope this further outlines our drivers.

Regards David Stevens