I wonder whether Management's participation on mass in the CR...

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taboon

6,565 Posts.

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10/08/22

13:42

Post #: 63033258
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Originally posted by Proga: ↑

Is there a chance they can pull it together - absolutely but it's the when which doesn't now suit me. Everything has been pushed back +5yrs increasing the risk profile.

I agree with a lot of things @juanhui said. Not all of it is the current managements fault. TBH I don't care whose fault it is. I'm looking at it completely unemotionally. It is what it is so what does that mean for the future?

The Vic Govt is banning new gas connections to residential properties and going to subsidise low income earners to switch from gas. This is going to significantly lower demand on a sliding scale in the coming years. It's the Victorian consumer who creates the spot gas market by using gas for heating and creating hot water for their homes. It's the spot market where all the money to be made is. GSA's keep the lights on, pay the wages and keep the banks happy.

The good times of today for the global gas market won't last forever. Because of the delays to increase gas supply, COE will have less time to make money out of the ever diminishing spot gas market increasing the risk profile. Investment in renewables is only going to accelerate.

As I keep saying. It's a race and COE keep falling behind for whatever reason.

DYOR. I maybe wrong.

The CR buying by the directors looked orchestrated by a group under pressure. I've lost count of the number of CR's I've chose to participate in or not and can't remember ever seeing such a co-ordinated response from the directors. Especially announcing as a block their participation.

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I wonder whether Management's participation on mass in the CR occurred only after they got a feel for the retail participation after closely observing the responses coming through.

It is hard to see what the catalyst will be this time around that will push the price back above 30 cents after this recent CR. They have certainly hooked some new major/cornerstone investors but retail confidence in management and this company is hovering at an all time low.

Company really needs to give retail investors a good reason why they should continue to hold - renew the confidence

Last edited by taboon: 10/08/22

COE Price at posting: 22.0¢ Sentiment: Buy Disclosure: Held
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