there may be more than a few questions at the AGM.
Interestingly, in the original 'announcement' CBD says
- that Neighborhood was started by Alinta. No, it was started by a group of Victorian ex-power executives from one of the genco's. Alinta put in a proportion of the start-up cash, and the ex-chair of BBP-Alinta was a board member for a while. BBP bought it out in mid '08 or '09
- Neighborhood has an established customer base. Well, the new entrant retailers are facing customer churn of 40-60%. Per annum. Not sure where Neighborhood would be in that range, wonder if the CEO (Tim Hunt-Smith) will be at the AGM to cast some light. I wouldn't call any new entrant residential customer base as 'established' with those figures.
- The AGM notice came out on 25 Oct - three weeks after the purchase announcement. On page 19 - "Subsequent Events" they do not list this $25 million acquisition. Has it gone off the boil, or did they forget to update the Annual Report? The 4C (31 Oct) and 3B (1 Nov) also had no text about how the Conditions Precedent were going. Off the boil or just inadequate (I would suggest) communication.
f111
CBD Price at posting:
8.3¢ Sentiment: None Disclosure: Not Held
