dps (interim) 2009-10, page-28

2ic

It is a fun game and I love every moment of it, excpet for the moments when I lose large amounts of money.

Report is very interesting. They use a WACC of 6% to get a valuation of $2pu. I think using 6% for a WACC is bizarrely low - especially in the current credit climate - and with 10 year aus gov't bonds at about 6% themselves, and regulatory risk, high gearing necessitating capital raising recently etc. Even in the US they have local governments that are out of cash looking at ways to get more money - not sure about that particular part of the US where Multinet is. I think that WACC at 6% is secret code for "Sell - but we are saying nice things as we want more of your business Mr Macquarie, and we love you very much"

I may well be wrong - please excuse my skepticism.

cheers

MM