gotta be a good safe bet...

ConnectEast (CEU) has to be a long term no brainer to earn in excess of 20% a year.

Trading today after going ex-dividend at about $1.70 a share and even at that price its new 10.25c fully tax deferred dividends gives it a yield of 6%.

The recent spate of good weather in Melbourne over the past 2 months after rain in June/July will have pushed things along.

It will open in March or April by all accounts. Surely it will be north of $2.00 at least by opening and Transurban clearly wants to aquire ConnectEast.

Transurban and ConnectEast have a similar birth, both were single purpose investment vehicles with Transurban formed back in about 1996 to built CityLink.

Transurban has since turned into a $7.00 a share company from its IPO of $1.00 when it listed on the ASX in 1996.

So thats like 700% growth in about 10 years PLUS the dig fat tax deferred dividends Transurban pays each year.

I see ConnectEast either:

1. Being taken over by Transurban somewhere north of $2.00 but more likely closer to $3.00 than $2.00.

2. ConnectEast following a similar share price path to Transurban if it's not taken over.

I bought into ConnectEast at about $1.25 a share about 18 months ago and I'm contemplating increasing my position.

Anyone got thoughts on ConnectEast (CEU) ?