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Ann: FY17 Half Year Investor Presentation, page-20

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122 Posts.

26/02/17

10:52

Post #: 22910501
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Originally posted by Brumbypat ↑

Yes the Aussie margin has come down since listing through increased competition from the majors Like Origin and AGL in the commercial space. I was telling all and sundry they would get smashed 18 months ago when the SP was $2.50.

Now the SP is $1.20 and on the way back up, because they have found better margins in the US and are growing that business rapidly. It's a different kettle of fish from an investment prospect.

Agree, if margins get crunched in the US then that would be a warning bell. But they might run for 10 years before that happens. Who knows?

My investment is now partly based on Trump driving the infrastructure boom in the US, and my suspicion that the $US will strengthen against the $A. If that happens, the growing US revenue will look extra tasty when sent home to shareholders.

All IMO, DYOR.

(PS. Will be interesting to see the effect on the bottom line after the benefit of the LGC's hit the books. Also looking forward to seeing what form the green generation project will take.)

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Note page 23 of the slides from mgt last week - in the US both Sales and Margin outlook are down, apprx 15% and 10% respectively...all while opex outlook is also up....C R U N C H...there is the warning bell you refer to.

EPW Price at posting: $1.11 Sentiment: None Disclosure: Not Held
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