Indeed, more or less bearing out what I have suggested about a corporate take over.
After all, owning some debt would have no sway if it came to getting leverage on asset sales alone, whereas it would in the case of a take over. Insofar as a differential of 20% in the debt for the suitor would have quite some bearing.
Nevertheless we must wait and see with regard to the antics ahead. Though I for one, see no profit in asset sales to improve the balance sheet, as might have been suggested as one of their options in recent ASX releases.
Alinta have quite a lot of generating capacity and I think fair value for the company lies in placing a dollar value for each MW generated, which is considerably more than the current share price implies.
However, interpreting grow by acquisition is a strange animal for chart watchers. Thus the subdued share price.
AEJ Price at posting:
5.3¢ Sentiment: Hold Disclosure: Held
