IT all comes down to CNE, page-210

Cujo,

I am not sure that is a good analogy though.

The situation with that 700k house, would require another $5M dollars to fix it up, before it is ready for re-sale.

And the renovation will take another 3 to 5 years.

So would you take the risk, not knowing what the future holds?

Even though, you know in "general" the price of houses will double every 10 years (though it does not necessarily mean it will happen on your street).

So the question really should be; will you spend 700k or 800k to buy it, then invest another $5M hoping to sell it for say at least $11M (at least double your money) or more?

That, I think is what the predators are working on, at the moment.

In any case, I think the market is expecting something - we are currently about 20% above our implicit value (WPL's $2.2 per barrel).