We may even see a new multi-year low on the back of this very positive development
Seriously though, this is a huge development for SE. The hard part was getting the capacity awarded to us. The capacity pricing shouldn't deviate too much from what has been guided. In my mind, this has almost guaranteed the FID for SE.
It isn't pleasant for shareholders at the moment but I have chosen to continue to remain objective no matter how the market behaves. Even though I have taken quite a bit of a pasting given how much I have bought lately, I will continue to buy on further weakness as the price/value gap widens even further. The dark side of the market can also be the most beautiful side If we are right about its valuation, I still believe the market will always find a way for the price to reflect that value one way or another. The value is on offer is beyond compelling with the price at around 50% discount to BP and Euroz, 60% to my valuation and 22% to Macca's barebone minimalistic valuation.
When the gap is that large, I take comfort in knowing that even if I am a bit off in my valuation model, there is no way in hell I am off by 60%
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