saddington, page-10

TBE

Just my humble opinion and logic..

1. ETC is very likely to meet its 2009 NPAT guidance - we had a reconfirmation of the guidance in 14th June announcement i.e only 16 days before the end of FY2009.

So..
2. ETC should be trading at a p/e of 4x and has No Debt - basically without the Chinese gas deal contributing much and if the Chinese gas deal is contributing and forms part of the guidance then ETC must be confident of its arrangement with Saddington.

What's wrong with this result first of all before we go any further ..shouldn't we be happy with a p/e of 4x and NO DEBT ?

anyway ..

3. Saddington , even say with its crooked director , must nevertheless honour its contractual arrangements with all contracted parties, otherwise it wont be able to fulfill the lucrative Chinese contract - in which ETC is supplying the key security/identification technology.
If Saddington doesn't pay ETC it'll lose the contract - simple as that or be sued to high heaven.

4. If Saddington ends up losing the gigantic Chinese gas tank contract , ETC may end up taking over the whole deal - so those that are thinking of all the negative scenarios just throw in a positive every so often, to balance things up.