great midterm stock, page-9

Far North Queensland has been growing rapidly for a decade now, and this is only the begining.

Many Asian countries are entering a wealth boom, and with that comes an increase in international travel. Cairns is the ideal hub for international travellers to Oz, especially from Asia, which has little or no time difference. The Great Barrier Reef and ancient rainforests are ideal marketing tools.

The other thing FNQ has going for it is its rainfall. As the rest of Australia gets drier and drier, Cairns becomes much more appealing with its extremely high rainfall.

As a local of Cairns, I can see that CEG is going to exploit this growth more than any other company. They own so much land up here and are developing new sites constantly. Their investment in Sita also proves that management are sharp and know which industries to diversify into for maximum growth.

CEG reminds me a bit of WES about 20 years ago; a relatively small company investing in the right places in an area set to boom.