Ann: EHE Market Update-EHE.AX, page-67

@gttrain

For what its worth - I completely agree with that comment... (as an aside - I don't know if you remember, but in Oct when I was saying that a CR was guaranteed, you were staunchly rebutting my claims & arguing like the cows come home that EHE was fine & the 'market' was wrong)

I said the exact same thing when I read through the investor presentation that accompanied the CR.

Their occupancy % assumptions in order to meet their EBITDA forecast are laughable. They have to be completely kidding themselves if they think they are going to achieve them.

The SP is being propped up ATM by Mac Bank & any other sub-underwriters of the right issue... they need to 'suck in' as many of their corporate & HNW clients in to accepting the $2.10 offering by making it look attractive as they want to minimise their take-up in accordance with their underwriting obligations. I've seen this happen time & time again.

Once the timeline for the retail rights offer passes, watch the support dry up & SP sink like a stone...

The retail entitlement offer closes 11-Jan 2017.... so IMO the SP will be around these levels until then.

A good idea would be to short as much EHE as possible until that date as you can pretty much ensure by the middle of Jan the SP will be under the 2.10 offer price. That's 15% return from these levels ...

The diehard longs that are dollars under water & don't want to see the forest from the trees will call me every name under the sun... but just like I said the CR was inevitable (I called it in October), the SP action will be as I've explained & there will be a further profit downgrade in the new year.

I still cant believe they didn't take the opportunity to downgrade their forecasts earlier in the week when the CR was announced & get rid of all the dirty laundry at once... then start with a clean slate... It would have been so much cleaner!

The way it's panning out it's death by a thousand cuts