The article Sounds like another shot in the WE WANT IT CHEAP camp -lets make it all sound bad.
Tell the shareholders and management they're in the way of an orderly rape and pillage of a company paying its bills,sitting on massive price rises,captive customers and a growing business.West Australian Govt retailer under pressure to stem losses from underpricing power,you name the upside.
Come on move over the yanks are coming and we're packing guns and we plan to clean out the last of the cash in the trough.Sell the bits off to mates or wait until all of the above occurs and sell it back to you for $2 to 3 Billion.CASH MIND,WE ONLY TAKE CASH.Sounds like the old wild west movies where one cheap shot from the whities kills 100 indians who all fall over on que and the guns never run out of bullets
THE HEDGE FUNDS GUNS DO UNFORTUNATELY - no hedge funds going to want to wait Two years to force the issue and that's what could happen if Alinta's management sit and wait.Even to make only 50c on each dollar invested.They want multiples on their investment over a coupla years,three at most.
then again US(you me and GPG) Shareholders are goin' to have to vote yes.
Don't think GPG are goin to take (13c a share)$10m profit for handing over control to anyone else.Don't forget they want multiples on their investment too for being first in the trough.That's the business they're in.
Maybe (20c a share)$50m.then again less costs that's only $35m profit.I figure they figure there's more to be had by just sitting and waiting to see what else falls from the branches.They are getting heavier by the day.
Buy out GPT for (60c)$100m means the rest of us can look at $400m between us.OOPS that's about what we're owed as trust security holders and our contribution towards any capital reconstruction.This 60c or so is what management said an orderly liquidation would give us anyway in june 2009
then again,power up 22% could add another $300m to sales for blow all increase in coal costs.Maybe 100,000 extra retail customers in victoria paying $120/mw equals maybe $300 cash profit from each one.that's another $30m profit.We don't have to generate that power either we can buy it for around 1/3rd of that.
where is the downside to smiling and saying -IS THAT SO - i wonder and sitting tight.
obviously a lot of people see a lot of value,but can't figure how to make the nut crack their way so they can get at the yummy insides cheap enough to make it worth their while. For most it would involve regulatory permission-hence the wait until nov 22nd i figure.After the election.
That date may also allow REDFERN TO PROVE ITS PRODUCTION ISSUES ARE OVER.That is not a plant secured by the syndicate of bankers.IT has independent financing.It also has prepaid coal supply for 50% of its production for the next 20? yrs i think.So what's a power station worth that you only have to pay half price for its energy cost worth? i wonder.
nov 22,Is that like the day after the election? New policys to ownership/competion/monopolies maybe?No disgruntled voters to vote you down for allowing your power company being bought by chinese mincor or singapore power or whoever.
How did the management know so far in advance-just joshing.
Xmas is coming and i think Santa's might have pressies for us good shareholders who can wait patiently for it to arrive.
AEJ Price at posting:
5.8¢ Sentiment: Buy Disclosure: Held
