BDO Report will be very fertile ground for TTY.TWo key issues...

BDO Report will be very fertile ground for TTY.

TWo key issues identified so far:-

1. BDO assume that to proceed with its projects and ipso facto the valuation, the company could raise capital of $12m at 10 cents per share to fund development. Well why didn't they raise any funds in Q1 2008 by way of rights issue or placement before scuttling off to TTY with the begging bowl and taking out the secret $2m loan. Because either no-one would support an issue or it would have been around 5 cents per share based on the price of 6-7 cents at that time and under the 15% rule all they could rasie was around $1.1m net of costs and they were down the hole by about -$1.5m by the end of February. Maybe the board could explain what was going on in January and Februray about capital raising and why they did not raise any at BDO's assumed price. Simple answer no-one would touch them.

2. BDO note that the depressed share price in the past may well have reflected a lack of confidence by shareholders in the management of the company. I presume that by management they would include the board because as I have banging on about for months, it is that the biggest single problem is that no-one trusts them, certainly some of them. Just look at the littered undelivered promises and other goings on. Just look at the results of last week's EGM poll. But for the support of TTY, the directors options would have been rejected by the non TTY shareholders just as they were on the previous occasion in November 06. How many juniors have shareholders who reject directors options? Very very few. Says it all.

Anyway its up to Patersons to see if they can generate some action. Already 600k through to Kiernan this morning, so some punters are not listening to the Board.

I await TTY's response with interest.