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Managed Account Share Trading Investment Notification – Purchase of Multiplex Group (MXG)

Wednesday, June 6th, 2007

Good afternoon,

Today we invested a large proportion of our remaining account into Multiplex shares (MXG.ASX). We have reason to believe that the discussions the company has been in for about five months are close to a conclusion, and that the final agreed bid price for the takeover will be announced in the next week. The bid price should come in at a premium to the current share price.

The downside of this investment is minimal, given that the PE ratio is 6.5 times, and there is a dividend yield of over 5% this underpins the share price. We also note that much of the construction troubles that plagued the company around the time of the Wembley stadium are well and truly over, and operations are back to normal. The above numbers make the company very attractive to fund managers and managed funds as it would easily fall within investment mandates as being fundamentally sound.

We purchased 30% of the account into MXG at $4.89, and are looking to stay in this investment not beyond the end of the financial year.

Although we intended not to be fully invested at this stage, we find ourselves 90% invested. We believe that the investments we have identified will be very profitable into the end of the financial year.

Please call me at the desk if you have any questions.

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Posted in Archive, Managed Account Investment Notifications, Share Trading Recommendations

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