I also have the view that management really has decided they work for the 32% shareholder who is over the hill and far away. I am not sure what actual competitive advantage they offer shareholders.
Absentee landlords don't often make the assets work hard. I am far more convinced that with a relatively small cap raising they will share percentage points off the overall interest rates. I would rather we raised another $50 to $100 million and destroyed the high-interest rates. Interest rates are often a reflection of an inflexion point. $562 million market cap versus $500 million versus $442million net debt. Bring that down to $350 million and raise equity to $620 million and I reckon it all becomes bankable. I would much rather the start of distributions and the return to bankable status than where we are right now. If we all participate it's only a 20% increase in investment for what I believe would be a huge interest burden saving and the swift status change. As far as I see the CR they did they thought would get the business moving but the past history and the fact that we are still awaiting the new assets starting to generate income meant that they did not raise enough in my opinion. Why not admit that and add a bit more to change the game.
The equity will also speed up the return to paying dividends and that will change the way investors look at this stock.
IFN Price at posting:
59.0¢ Sentiment: None Disclosure: Held
