As far as I'm concerned CLO has been oversold. To be successful...

As far as I'm concerned CLO has been oversold. To be successful in picking good investments you have to try e forward-thinking, not languish on current events. CLO did the right thing in informing the market of the possible impact of the two contracts on half yearly profits, but, as they were at pains to explain, CLO don't push forward contract sales figures into the current period. Add to this that negotiation is underway to reconcile differences, and that the contracts are finishing anyway, this means that, although possibly affecting the current terms bottom line, it will have no effect on future profits.

As has been mentioned, contractual issues occur from time to time, at this point in CLOs life it has a reasonable impact, but as they grow with more contracts, these type of issues, which are inevitable, will not impact as heavily on CLO as a whole.

Mention was made of institutions, and their decision to not invest because of the high ownership by directors. All I can say is, as a small investor, if you try to make your decisions based on the same criteria as institutions, then you will never be successful.

CLO, in my opinion, is an excellent short, medium term prospect.