Clifford Corporation Limited

Clifford Corporation – suspended: The news on Clifford gets worse by the day. Initially, the company suggested that the delays that caused the suspension of its shares were due largely to the induction of new auditors and requirements to obtain third party audit opinions for certain issues. In the last week, however, the situation has become a lot worse. It seems that the company has had to appoint a voluntary administrator to its main operating subsidiary, Austral Pacific Group Ltd. This is very disappointing for us to have to report, particularly given the potential that we thought the company had. Nevertheless, such disappointments will always be part and parcel of investing in speculative growth stocks and highlights the caution that should be taken when investing in such companies. It might be wishful thinking, but let's hope that we have seen the worst of the news. We will keep you posted on events as they transpire.