OrientCapital still doing the ring around. They were very excited to hear I changed my voting intentions to the positive. I think the price is a bit light (still). I worry what happens with a 'no' vote - re price. It will be 88-90 cents and take 18 months to claw back to $1.10 (I count the franking).
Of course, in due course, it will be a $2 share (say 4 years or so) - but it will need to do that in the PEP Infastructure Fund (if it goes there).
Better for me to try to, with more diversified portfolio, match the growth I am missing over the next 3 to 5 years with Zenith. Of course, I give my opinion on how it pertains to me.
One thing this episode has taught me: there sure is a 'game' in town for private equity funds to buy assets at unders. All you need is to get an 'expert' report on side. The 'needed' return of 11.5% on the Cabal's investment to be 'fair' to the Cabal, is interesting. They said one can get 3.5% risk free right now. And the share market should average 6% on top and there is some 'mystery' risk with Zenith of 2%. So the $1.01 is fair to the Cabal because it provide a 'fair' return of 11.5% from Zenith to them. I hope I understand correctly, what Grant Thornton said.
That tells me I should be looking at some Private Equity funds / lics. If they are buying up so many assets at such bargain prices (assuming they need/get 11.5% on their investment)... then it tells me the dollars you give them (as an investor to them) should do very well. This is a new avenue for me to study.
Thanks so much to all for making this a good forum. It was fun. But it seems we are seeing The Cabal's light. "Go to the light", they call to us.
ZEN Price at posting:
$1.05 Sentiment: Hold Disclosure: Held
