There seems to be a lot of doubt about how much interest AZZ has in the JV. Seems to be strange that they would be gagged from providing details of how much they will own. The only reason I can think of is that it is a really good deal for AZZ making the other company not want to disclose what they agreed to. Please comment on other reasons. All I do know is what the experts are telling us. On the comsec site I see the company's forecast earnings as below. Earnings and Dividends Forecast (cents per share) 2009 2010 2011 2012 EPS -1.6 35.9 3.6 5.0 DPS 0.0 0.0 0.0 0.0
From this I would assume that the 35 cents this year is from the sale. After that it is 3.6 cents then up to 5 cents in 2012. Surely they haven't factored in what they will buy with the proceeds of sale, meaning most of this money will come from the JV. At 36 cents this year that is almost a 100% return. And a 10% return for the current year. I don't think analysts can factor in what they buy with the proceeds as they may just buy undeveloped ground. Therefor the figures above could be much higher. Even at those figures AZZ looks like a good money earner with a lot of potential. I'm sure the current upswing will continue now the disgruntal investors have left. Maybe not even disgruntal, just that they wanted there money to be invested in something that doesn't exist anymore.
