Well, if he can get $39 for the paper sitting in his drawers, there in no point paying interest, still having a financial facility set up is very important is business as well as in private affairs. Having access to funds when one needs them make the life much easier for company or individual.
You do not want to start knocking on the doors when you are in temporary financial difficulties, you look like a bad risk then. Banks love to lend money to people who do not need them, needy people need not apply unless they have a house as a security.
Sorry to be a bit negative, but if one reads the company media release carefully and few times, then it become apparent that the news is not as great as it appears after first reading.
"after it announced a joint venture with two Fortune Global 500 listed Chinese energy utilities."
This is a quote from the newspaper clip, but if you read the release slowly and carefully, you will see the deal is actually with the subsidiaries of two Fortune Global 500 listed Chinese energy utilities. Not quite the same thing. Pardon me for splitting the hairs, but they could be be just two $2 companies with $6 billion dollar "ambition" and otherwise empty pockets. I am not for a moment suggesting this is the case with CBD, but unless they put some meat on the bones and give us some concrete numbers to look at, this is just another pie in the sky.
6 billion "ambition" in eight years turns out to be $200 million project in south-west New South Wales at Taralga, yet to start.
Even $200 million project would be a great news if CBD was the principal, getting paid for the installation and then collecting revenue as operator on similar terms. But they do not say. In fact the worse case scenario I can imagine, being of suspicious nature sometimes, is that CBD will get only 23% of the project they have been working on and spending money for yonks. CBD is contributing all this past effort and expense and is handing the ready to go project to the joint venture, but we have not yet heard how much capital or what are our joint ventures putting in the deal, apart from six billion dollar ambition.
I mean C'MON, how is one supposed to get exited about all this? Where are the rivers of gold , or at least the rivulets, that will flow to CBD its shareholders.
Nice Power Point presentation with few bar charts and some numbers on the edge and few pages with some dot points on them would give us something to sink our teeth into and digest. That is the stuff that dreams are made of.
CBD Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held