Billyt,Got in at 7.7c and topped up at 7.2cThey have there AGM...

Billyt,

Got in at 7.7c and topped up at 7.2c

They have there AGM tomorrow.

They sent out a report from Deloittes on Williams converting debt to equity at a rate of approximately 14 - 15c. The AFR had a summary about a fortnight ago.

In summary the report said there are risks but 14-15c was a fair transaction.

Overall the report was highlighting a lot of negatives (Telstra and Optus the two big bullies - If you fight with gorillas expect to be beaten up - K Packer on onetel)

The market received these reports about 2-3 weeks ago and this stock was 50 - 60c just over a year ago and $2 - 3 prior.

Any smaller, leveraged investor has dumped them hence down from 12 to 7c in quick time. Still a lot of disgruntled shareholders but why would you dump now.

AGM tomorrow may bring one final sell=off but you have got to realise they have invested large amounts into optical fibre 1,000's of KM. All telco's are down, Williams in Bankrupties, Downtown Utilities are reportedly shakey - Citipower being sold and probably getting a high price in a competitive tender (down't pay to much and then be short of capital and then dump Powetel) tax loss selling early etc etc

Its all bad news but data transfer volumes may be in the early stages of an upswing and what the corporates - especially on the Southeast Seaboard require is security of data and continuity of supply. Therefore powertel will have a market it just comes down to price and management must cost every dollar of capital expediture.

Either way short-term sellers and long-term buyers. Both have completely different rational. My target is 11c. But if the large holders just dump there stock then in come the vulture funds, and "property" style investor looking to collect the toll and not pay to build it.

And the price today suggests the transfer will get through.