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Aug 25, 2007


Gary D'Arcy

With all due respect I think your reasoning is flawed!

This is an overdraft in our world, not sure what you call it in yours.

If you have $250,000.00 in the bank and then
get and overdraft for $250,000.00 who do you think will be better off.
You or the bank?

So where is the $80 mill on the balance sheet and if it is there then the sales figure are not as great as posted the growth is coming from investments not sales.

Expansion plans! Well if you intend to acquire something you raise
the credit at the time. It is far cheaper that way.
Or issue more shares to cover the cost.
A public company is in many ways like a bank. They have the ability to raise capitol at a cheaper rate than the bank rate by simply issuing a share offer.

A credit crunch only helps those that are liquid.

You suggest they might not use this line of credit!
If they use it or not it still comes with a cost to the bottom line
but to put it in place seems to infer they need to use it!

In my world of economics this does not stack up.

And a far as Rand goes they are a little to late unless they want to
be done over by the vulture capitalist!

Regards Gary


Talk about poetic justice (Re. Autodesk acquiring their gutted dealer network.)

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