alinta

What a lot of you must remember that GPG's initial investment in alinta would probably have been for less than $5million and for all we know could have been a transaction to allow a friendly party to take a tax loss.The next 9.9% was bought at around 8.5 cents a share.Altogether they probably have around $10 million tied up in alinta which is chicken feed for them.I suspect they are probably applying idiots logic to this investment,much as i am.
I figure alinta should have atleast$50 million extra free cashflow a year minimum before depreciation with a big upside from interest savings from BBI debt that was around 14%plus the interest reduction in its $2.7Billion dollar loan.In other words i see 100%+ cash return on my investment with this(alinta being only worth $50 million in total).The removal of BBI debt is also like a 50 cent per share asset appreciation (dividend )without the tax.So what if i don't get it in the hand straight away,the company's paying down debt that was costing 14%.No banks giving me 10%
The resource companies and their bankers especially won't want to see their major supplier of electricity/site steam cease to be able to trade.Nor will they want any future energy supplier to deem it too marginal or mean a payer to want to supply them with future capacity which they need and are already making political noises about desperately wanting.
So after a bit of a hick-up i see only upside.Remember and consider alinta's purchase of the remainder of neighbourhood energy.I don't see the funds they expended for control excessive,but its probably not far from sum of money GPG paid for that extra 9.9% of the whole alinta group.What do you think is more valueable?
The bonus is GPG's 19.9% that they ran to top up at around 8.5 cents a share.To me this means they see light and value well above this,so anything below this is a double bargain in my eyes
The entering into a tolling agreement for one power station,where they do not supply the gas,nor accont for the carbon credits is a sign of things to come i suspect.It guarantees return,reduces risk(gas price rises)and gives Alinta options for the gas that was being used,maybe getting a higher price for it ,or not taking it at all.


I invest my own money and take my own risks using my brain to the best of my ability.We all see the world differently and only time proves whether we have made a good investment or lost a risky gamble.Only invest what you can live without today and not need tomorrow should it all be gone