re: Ann: CBD AND CHINA PARTNERS ESTABLISH AUS...
macenroc said: "CBD will provide project management and sales."
Yes that is how it reads ATM. Completed project management, IMO, not the construction supervision - or am I wrong?
Overseeing the running of the renewable energy plant could be reasonably lucrative. Real estate agents charge about 8% of the rent for not doing very much, collecting rent, answering odd telephone call, organizing the odd repair by calling the plumber or electrician, keeping the accounts and passing what is left over from gross rental income to the investor. They also will find and vet new tenants for extra charge.
Operating the functional renewable energy plants would not be that much different to what real estate agents do IMO. Easy money for pretty mundane work.
This a clipping from an article on Business Spectator:
"CBD Energy will project manage the developments, negotiate approvals and power purchase agreements."
So, maybe, CBD will get to be involved in the installation part of business as well. I would certainly hope so, after finding this bit in the above article.
"The companies will form a new entity called the AusChina Energy Group, which aims to develop $3 billion worth of wind and solar power plants in Australia within three years and $6 billion over eight years."
So Wind Generating venture of yesterday, becomes "Wind and Solar power plants projects" today.
That would mean heaps of work for Eco Kinetics IMO'. CBD's subsidiary and currently the biggest contributor to CBD's profit. Surely we would not farm out installation profit margins to the competition?
If CBD will be acting as an agent for the equipment manufacturer, this should eliminate unpleasant surprises like we had last year with shortages of inverters and skyrocketing prices of solar panels, mainly due to erratic policies of various governments, state and Federal.
All this potential revenue, without having to contribute any capital. So why is not market going bonkers about the CBD and SP is dropping?
Maybe investors would like to see, just like me, a spreadsheet with some numbers and a chart or two with pretty colours. Power Point presentation with some dot point and highlights summary.
Andrix said: "even 1%, a low profit take, would be $10M each year - that would double the current profit and make the current sp look cheap."
Clearly I am not the only one interested in some numbers.
CBD Price at posting:
17.5¢ Sentiment: LT Buy Disclosure: Held