upgrading cix to strong buy, page-9

Guys

Interim results (H1) are quite strong: perhaps Kirk has started to listen to someone (!) regarding his investment portfolio (not the annualised rate of return - to me it appears that he has finally lengthened the duration of the book! - as suggested!)...

NTA does not include the goodwill component, which itself it quite heathly (and worth around 14 cents/share). Note here that the Sports sale was above book value, it is likely that the goodwill component may indeed be an undervaluation of those assets. The willingness of CIX to divest of such assets is a good sign - these guys really need to work on their COR to get it moving downward, and to achieve that I think it best they rid themselves of such distractions, particularly if it means banking some profits and releasing LAT etc.

EPS much improved on previous half as well, and from what I can see (not that you can see too much in the half yearly report) is sustainable throughout H2. My guess is that an improved dividend may actually be on the cards by year end.

At 23.5 cents per share we are really at ground zero in terms of share price (22 was the ultimate buy), and I for one am willing to throw a couple of pennies at this one as I think they may have now sorted out some of the bugs.

Better times ahead for CIX now I think.

Best regards
Kit