recent trades, page-7

thumbs up Ithaca

I think the directors are under a lot of pressure.Its better to say nothing and beaver away,which i have faith they are doing.
There has always been a lot of negative for Alinta/BBP shareholders.Too many false starts and too much loss of equity.
maybe a sale of glenbrook co-gen plant in N.Z,it doesn't show a big profit return and must be a hassle to manage
Yes these 6mo of accounts to june will show a big profit,but we all know that's from the BBI debt restructure.There may be a little bit extra sweetner as a result of the tolling agreement they entered into taking a loss there into a future profit.I suspect a little more free cash to help cut back on debt(remember the $100m extra short term borrowing to help with the gas cost),or maybe improved performance /funds for expenditure.
Either way we know they will report extraordinary profits of $250 mill from bbi deal on top of normal operating profit guideance still set at $288 million and this (250)will go straight to shareholder equity,to improve the gearing ratio.we also have been told of some countering writedowns.
After these accounts have been presented i suspect a re-rating of the company will occur,it having a clean easily readable balance sheet/profit and loss.
with no more hidden contingencies waiting in the background.
Growth with neighbourhood energy and with the existing retail customers.Each customer is valued around $750.If they add another 30,000 as suggested then that's maybe another $20 million in value if you onsell those customers (retail business)at some stage.EVA(economic value added)
with a surplus of generation in populus areas the money for the short-term will be in selling retail gas and power,until that changes.
Whereas most of alinta's generation is tied to the resource sector,or isolated network where there is little or no competitor and hopefully more robust pricing.

What is a company that makes $50M + cashflow every 6 months worth i wonder.I suspect a lot more than the $44m share value.
No its not taxable profit,but it is solid cash generation to pay down debt at $100 million a year.Beats being asked for a 15 cent per share cash injection to pay down $100m debt every year.Plus we get to save the $8.5M on each 100 paid down.That's a cent a share tax free.
A change in economic demand up or a sale of say glenbrook might be all that's needed to crack the ice strangling Alinta's future and our shareprice