EKA eureka energy limited

EKA continues to outperform AUT. There has to be a reason....

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    EKA continues to outperform AUT. There has to be a reason. Usually the reason comes down to the law of supply and demand. Therefore we can assume that there is more demand for EKA. We can assume that there is reluctance on the part of holders to sell.

    One reason is the loyalty that the EKA has shown to their shareholders in giving them first bite of the cherry with the SPPs. The latest is as good as a dividend of around 30%.

    With comparative values based on fundamentals it is hard to value AUT at less than $1.10 yet it is still in the mid 90s.

    The only reason can be speculation of a takeover and accumulation on behalf of a predator as i see it.

    The gap widens today with EKA up over 8% and AUT up over a little more than 4%

    Time will tell. I doubt if it will be long before all is revealed. DYOR.
 
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