Ann: ERM Power announces LGC Fulfilment Plan for 2016, page-28

To give my comments balance probably need to say why I am invested:

1. The company has had no1 spot for customer approval over the past at least 3 years and I think it may well be heading to 5 years.
2. they have been very smart in their approach and probably their profit issues relates more to the chaotic national situation we find ourselves in...
3. Company that has a high conviction rate by satisfied employees.
4. The peak power plants are still virtually new and as coal generators leave the spikes will be serviced by these plants and in fact they should do a lot better.
5. St B's are very smart operators and I still think they influence the company positively.
6. Best of all is that they have gone to USA - I think they can make a business far larger there and more stable... Their first couple of years have done very well.
7. Long term the business must have a lot of value - Large customer base and large number of LGC's banked with regulator...
8. SME business will over time add margin to the mix.
9. Cash flow is positive and can fund a reasonable return to shareholders at these share prices.

I have no idea what fair value is but if they pay around 7c dividend fully franked I am happy to pay around $1.50 until the USA opportunity is determined. $1.30 is a bonus. If they stop the dividend then it could be a blood bath...