I bought in again today at $1.62. Me thinks this will be $2+ by mid 2008 - 6 months for about 20% gain is good enough for me. Plus there's the 10.25 fully tax deferred dividend.
CEU is going ex-div in Feb so it's like only 2 months until then, share price should move up because:
1. The opening could be as early as Feb but no later than May it would seem.
2. The dividend has been pumped up from 6.25 to 10.25c fully tax deferred, going 6 monthly ex-div in Feb.
3. Tolls get to go up from $4.82 a trip to over $5.00 on June 30th.
4. There's no doubt that TCL want Eastlink, and if they can't come up with the $$$ then other players like Macquarie infrastructure would be in the offing.
Remember Macquarie Bank is a big financial lender in ConnectEast, makes sense that MIG or another Macquarie offshoot might like to buy up CEU.
In any event, I see much positive news in the near term.
The sale of units by TCL is more likely trying to bring down the market cap in CEU I'm a thinking.
CEU Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
