Why No?, page-3

First 3 Last

Share
Profile

Follow
Boater

131 Posts.

3

09/12/16

11:41

Post #: 21224300
Share

Originally posted by GPASAS ↑

Hi Williak

I do think there is a chance of Couran Cove succeeding but I believe the reason the ordinary shares have fallen down is that we take all the risk for this new business. The directors and outsiders who took all the preference shares are getting 8% dividends per year and then in five years they can convert to ordinary shares and take control if things are going well but otherwise they can apply to get their cash back and we ordinary shareholders will be in great trouble then. They also have the right to extend the 5 year period for holding their preference shares if they want to. I think it is disgusting that the ordinary shareholders of this company were not offered the preference shares and now we are just offered more ordinary shares at 38c which looks like failing.

I live in WA and I recently visited the McGrath site and they are only building about 7 houses which is the lowest I have seen in recent years. I also went down to Boyanup to check out the Meadowbrooke site which is McGrath's biggest contract. Not a single house has been put into that site other than the McGrath demonstration houses. However a lot of work has been done recently on the Meadowbrooke site which made me think they are feeling confident of it working. I was told that six houses have been paid for and others have been ordered by people subject to the selling of their own houses.

I also heard recently from an experienced outsider that Bloomer is continuing to go badly and likely to be losing more money. That business has been surprisingly disappointing.

So lets hope that Couran Cove goes well. If things do work over the next 5 years then the preference shareholders convert their 55c purchase cost into ordinary shares so the ordinary shares will have to be over 55c at that point. Lets hope it works if we are still in there.

GPASAS

Expand

Very valuable observations for East Coast shareholders. This morning I was telephoned by an earnest young man asking me whether I was intending to participate in the SPP at .38c. I asked him why I would do that when the market is .36c, surprisingly he said thank you and good bye.

OTR Price at posting: 36.0¢ Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

Breaking news: New opportunities for investors & companies - HotCopper opens to capital raising!

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

There are more pages in this discussion • 16 more messages in this thread...

First 3 Last

Add OTR (ASX) to my watchlist

Why No?, page-3

Top Stories

Breaking news: New opportunities for investors & companies - HotCopper opens to capital raising!

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

Featured News