March?If you review the Oct BBR broadcast again things stick....

March?

If you review the Oct BBR broadcast again things stick. Firstly, Con makes a point of doing business in one's backyard first before anything else and secondly when asked what shareholders could expect in the next 3-6 months, Con states two potential powerstation deals in 6 month's time.

We know already that ESI is being very structured in their approach so assuming March is the target that contracts are signed and released to market then working backwards you would expect the February period to see things brought to the table and discussed with any contractual issues ironed out. The January period therefore would most likely see the BFS and hard numbers finalised so the above discussion/negotiation can take place in February. Of course this is my logic and I could be wrong.

On a side note regarding the BFS, ESI has chosen well. Arup is a very well regarded global company which will add creditability and bring the comfort level up for all future customers.

But what does it mean for the SP? What's interesting is looking at the buying support building-reminds me of seagulls sitting on the rail waiting for a hot chip to be thrown to them.....

You could argue using market cap analysis that ESI SP should be around a $1 post contract ann but that's in a perfect world. Having said that though ESI's own estimate for down the track is around $1.95.

Not including any positive SP impact from board makeup changes I'd suggest an initial 30 cents plus by March....maybe more if Matmor developments and other unforeseen deals from overseas kick in earlier than expected-obviously comes down to timing.

Cheers to those that hold,