Wow guys I dont get it.Oorain you held but you knew it could not...

Wow guys I dont get it.

Oorain you held but you knew it could not work?

Firstly I did a lot of work on some of the facts:

First fact I gathered was the disconnect between the wholesale price of electricity and the retail price - huge margin for an intermediary. Insurance agents get around 15% and I think its roughly the same for travel as I understand it - its more than double to supply electricity.

This model works especially in retirement villages - The audience want access but dont use it very much - the connection fees are a huge cost and its all not really a cost as the technology exists in metering for anything from water to internet.

I have heard of a contract that about to go in in the city I live in. Its going ahead the developer as retirement village operator sees the benefit. By the way the bad side is that the operator does not have to stick with the company beyond the initial contract.

There is profit on the installation of the equipment and then on the usage. It can be extended to a number of services such as internet etc.

Mr Gandel is no fool - the business was very close to break-even - No doubt huge wastage over the years in my opinion but time had put a number of contracts in play and they were coming online. There was always risk that at the end of the contract period these would disappear and I had no faith in management (executive)but in reality to make this out to be an impossible dream and could never work is really not true in my opinion. This failed in my opinion because of a lack of management and a lack of understanding the reality of these contracts.

I think Mr K would be happy to be rewarded out of results given where this is now. I think it is well placed. To write it off as a bad business , could never work allows everyone to ride off into the sunset without an understanding of the timing and events that were taking place. It needed money - no doubt and it needed management no doubt but in my opinion it was by the shear weight of time was getting to where it needed to be to roil over to break-even. I also believe that management would never have got it there continuing to increase size and expenses always wanting to add layers before you had reached the goal.

This failure in my opinion was down to bad management not a bad concept or a bad product.

Personally the rampers here were not doing it without believing it themselves , certainly the one who became part of management had a huge amount invested. Not fair to criticize - he had a huge amount of skin in the game.