any ideas whats up...., page-2

I am somewhat surprised that you, as an existing shareholder, are not appraised of the recent major developments regarding EWC which have dramatically impacted on the financial status, viability and strategic direction of this company. During the past 6 months, EWC has made a number of ASX announcements which underpin EWC’s corporate and financial strengths. I just refer you to some of these new fundamentals:

In May 2007 EWC announced, in part, a 60MW expansion (to become operational in September, 2008) to its Sengkang power station (up from 135 to 195MW) as well as an additional 60 MW (up from 195 to 255 MW) to become operational by first quarter of 2009.

EWC also announced the development of 2 x 500,000 tpa LNG trains at its Sengkang gas field, the building of a LNG hub in the Phillipines and entered into o MOU with a vertically integrated Chinese power company for the delivery of up to 5million tpa LNG. Since then, EWC has also been approached by Japanese interests to supply LNG. Estimated gas reserves at the Sengkang gas fields are for 5 to 7 million tpa LNG for 20 years.

As far as the share price is concerned, it depends whether you are more a day trader or a long term shareholder. I have no comments to make, if you are a day trader, as I keep away from this kind of activity. I am more a long term shareholder and the volatility in EWC’s share price is really of no concern, given the following fundamentals which do not account for all of EWC performing assets, but only for the assets listed below:

The EBITDA figures are as follows:
135 MW Sengkang: $48 million
195 MW Sengkang: $70 million
255 MW Sengkang: $92 million

500,000 tpa LNG: $90 million
1,000,000 tpa LNG: $190 million

Earnings per share (assuming current 1.4 billion shares)
195 MW Sengkang plus 500,000 tpa LNG: 5.7 cents
195MW Segnkang plus 1,000,000 tpa LNG: 9.3 cents

Share price, based on the following performing assets only, on 28 P/E (which is the current p/e for the utilities sector)
195 MW Sengkang plus 500,000 tpa LNG: $1.60
195 MW Sengkang plus 1,000,000 tpa LNG: $2.60

Conclusion:
Firstly, with all these projects being developed, being built and commissioned, EWC is preoccupied with realizing these projects on time and on budget.
Secondly, with these above projects being finalized during the next15 months to 30 months, the share price will, in time, reflect this.
Thirdly, once the Sengkang gas reserves are proven to be 5-7million tpa LNG, and contracts entered for supply of same, the share price will take into account the new financial rewards accruing to EWC (on a p/e of 28, every 500,000 tpa LNG means a rise of $1 in EWC share price).