re: Ann: CLO: Close of Clough Proportional Ta... The price...

re: Ann: CLO: Close of Clough Proportional Ta... The price movement was great but a shame the ass fell out of the Dow friday. There may have been somehting behind it though it wasn't big volume.

Perhaps guidance will be provided, was done so at this time last year. Or we may see some CLO or other deals announced.

There are some external concerns at present holding this one back like many other stocks. I believe they include:
- Resources tax (ovbiously), though I think a lot of the canceled projects are political jockying. I also think this will be watered down substantially or Rudd will lose the election. Miners are in limbo now though as they have no clarity and this could result in less work until we get resolution. WIll be interesting to see where FGE's order book stands mid year.
- Europe, again this is an unknown and could have large effects.
- Oil, this hasnt gotten the attention it deserves. Longing oil right now is a good play IMO, the gulf disaster could also have large scale negative economic effects in the USA.
- Downgrades by AAX and DOW are not good to see though they appear to be botched management problems as oppose to other industry wide factors.

I still value FGE at $4 right now in this present market simply by comparing it to peers. Another strong year will gain it more respect and we know EPS should be around the 40c mark. If EPS can go to 50c by 30/06 2011 i think we would see it on a PER of 12 like bigger players, that is a $6 target in a years time really. Not an agressive target either mind you.

A friend of mine spoke to Black Swan and they think the CLO deal was great as it minimises risk and opens up a lot of avenues.

CLO own 30% of FGE, we gave them cheap entry prices but if they are going to give anyone work FGE is first on the list. Hopefully we see synergies form here. CLO should also laucnh an unconditional takeover bid, I don't want this but they should do so now at $3.50-$4.00 I think. Wonder if CLO are thinking this was at all?

For now we need to see how things go globally and see if FGE can up guidance and get some positive momentum going again.