what i find interesting to see is what looks conditioning going on to me.Hypothetically how do you get an article printed in a paper,that will economically benefit you with misleading information and what might it cost if anything?Buy a bloke a drink and let him in on a secret scoop maybe.I'm not suggesting anything here,just letting my mind drift-just a crazy improbability-right. Probably no different than the negative press that killed Rudd. Silly thing is all he had to say was,didn't we built that railway that BHP uses to make a fortune and when we suggested we might force you to share it with minor producers,so they can increase exports and reduce costs,you did a deal that's going to make savings of $5Billion a year and cut out the smaller producers who were pushing for access and keep the two biggies in control.So How about a cut for the taxpayers who's concessions i believe paid for it.Bet he'd still be PM and popular as heck.(still that would be admitting to past pref govt help) Under 6 mo ago alinta installed a new gas turbine in the pilbara for over $60m.instead of paying debt down. Now someone pops up and says the whole set-up they paid $508m+ for is now only worth $300 tops after 11 years.Half price plus $50m for the new $64m turbine My old car would devalue by that much,but not power stations.Someones pulling other than my leg and i'm not in Phuket. BLATANT MISREPRESENTATION NO.1 and all us shareholders who read know it NO - ALINTA DOES NOT HAVE TO PAY $250 LOAN REDUCTION BY MID NEXT YR ,but if it doesn't its interest rate goes up 1%-woopedy dooo.So it costs another $29million.i suppose if you say it often enough it becomes the truth.How many times have you heard that lie so far. ITS THE BANKS THAT NEED THE COMPANY RATEABLE SO THEIR DEBT ISN"T A DRAG ------ON THEIR CREDIT RATING-----BET GPG"s BEEN BUYING.It would be a nobrainer for them,buying your own investments debt at 30% discount and earning 12%+ ON IT as the banks stew.I'm picking that's why GPT has split.Maybe an australian listed and owned company will be a more acceptable owner to the west australian government.They were sitting on over $2B cash i believe and very vague on their promises to shareholders to release large value before their last agm
FT site says alinta revenue will grow 4.5% this coming year.
with no sales of assets thats near enough $90m extra cashflow. yes its costs are up,and that is around $90M for gas,but so's power and gas and most of its generation is from good old dirty cheap coal from sources at NO EXTRA COST. Put your power bills up 12% and half of that extra power created doesn't cost you a cent more.Might be a bit more in the pot me thinks. Playfords value went up with the gas price.Worth less than the $317m paid for it says.I'd say a darnsite more,Captive market,extra power coming from more expensive gas while you've still digging dirty old coal outa your own mine for nothing more.No carbon tax.Think of the goalfields pipeline as a tax on every competitor who tries to compete with NEW gas generation As to the goldfields pipeline,well they've increased capacity and yes the transmission charges are beng regulated down,but $100m for 11.2%.well just look at what they are planning to spend on expanding throughput and work it out yourself.plus you get your gas carried for free and get 11.2% of any third party revenue.That actually means as capacity grows you get a greater than 11.2% share of the revenures from that increased capacity.That is because alinta capacity is limited to the origional pipeline capacity.Bet APT hate that paying a greater percentage as the larger shareholder for less than the minor shareholder gets in returns. I remember in NZ when the precursor of origin offered to swop shares in CONTACT energy for bonds paying the same return,then promptly increased the dividend and the shareprice as well.essentially the shareholders let the companys other major shareholders buy their own shares when the bank lending the money must have had some inkling the divvy would rise to meet the interest cost.Although that's not the way it looks or was marketed through the media.Contact is now owned by origin-Has lost 60k+ customers by hiking prices,when power costs were falling and after directors and management had voted themselves massive payrises.
I suspect we're being marketed and conditioned to accept a fate worse than death and if enough shareholders stay asleep-we're for the slaughter. SPREADING THE TRUTH IS THE ONLY WAY TO COUNTER IT. Maybe if a shareholder with balls threatened to sue(the newspaper)over their inaccuracy in reporting and ellicit a correction of fact printed on the front page it would stop. then again they'd only say it was a minor missprint/typo wouldn't they
AEJ Price at posting:
6.4¢ Sentiment: Buy Disclosure: Held