return our cash!!!, page-25

Hi fellow CTN' ers. I was not happy with the CTN response to my original query (Q&A's earlier in this thread) and have just sent anoither email (see below). I will post the response. Any thoughts???

Hi David, thank you for your prompt response of 15 January 2010.

There are a number of points raised in your email which I regard as worthy of comment or challenge however my initial concern is that you have not adequately addressed the issue raised in my original query regarding:

The price has consistently traded at a significant discount to NTA. Recently this discount has been approximately 50%. Isnt it in the best interest of shareholders to wind up the company and return the cash to the owners?

To clarify the issue, the price closed at $1 on Friday (22/1) and the most recent published NTA is $1.495 (before tax) equating to $1.46 (after tax). That equates to a potential gain of 46% (minus some admin costs I presume) to shareholders if a decision is made to wind up the company.

In fact I would argue that if the company even alluded to the consideration of such a value creating process the price would self adjust as the market responds.

To me, if the market continues to value the company at such a significant discount to NTA the opportunity to realise value by alternative means should be considered. I propose that the company should develop a strategy of managing the sale of all the assets in a strategic and organised manner and return the cash to the shareholders.

Please advise whether you consider this to be a reasonable position and if not the reasons why?

Regards Graeme

PS I note your comment At CTN we have a strong belief in the performance potential of micro cap companies .. The opportunity to invest in the micro cap end of the market is what attracted me to CTN many years ago however the fact is that there is a potential 46% gain for shareholders available right now. In my opinion this outweighs any potential that microcaps may have. Further your belief that the discount (to NTA) is exaggerated by the GFC and will normalise as markets normalise is problematic from both the perspective of when and if markets normalise (whatever that means in these times) and the time scale for this to happen.