LNG 0.00% 4.3¢ liquefied natural gas limited

Ann: Trading Halt, page-48

ANNOUNCEMENT SPONSORED BY PLUS500
ANNOUNCEMENT SPONSORED BY PLUS500
CFD TRADING PLATFORM
CFD Service. Your Capital is at risk
CFD TRADING PLATFORM CFD Service. Your Capital is at risk
ANNOUNCEMENT SPONSORED BY PLUS500
CFD TRADING PLATFORM CFD Service. Your Capital is at risk
  1. 135 Posts.
    If you wouldn't then you should reconsider your investment philosophy.

    To answer that question, you would do it in a heartbeat. The funding rate for term deposits in Australia is about 3.5%. You would sell your LNG shares, buy a 20 yr term deposit. Sell your 14% term deposit on a 3.5% cap rate then buy yourself $8.66 worth of LNG shares. Doubled your money overnight.

    You've taken a myopic view from what I can gather around dilution only and are failing to apply the principles of cost of capital, the use of funds and the importance of having a balance sheet and the effect this may or may not have on the progress of the company.

    This table will help you understand how purchasing a portion of the equity stake from Stonepeak by paying for early works is in fact beneficial for shareholders as long as they spend at least circa $100m on it.
    Last edited by Intel24: 18/05/15
 
watchlist Created with Sketch. Add LNG (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.