I am fascinated by the constant La Jolla Cove bashing. I appreciate that some people have had a bad experience with that company. But if I can say some words in its defence. (a) The money is cheap at 2.4% (b) It constitutes a very small portion of the capital of AEB and helps to pay for the running expenses of the company. (c) AEB actually hit its highest price after management had agreed to deal with La Jolla Cove, albeit before shareholders gave their OK to the deal. (d) To deal with La Jolla Cove was subsequently unanimously approved, without dissent (if I might repeat myself). (e) La Jolla Cove don't really hit pay dirt until the company's share price hits 55c. It is as much in their interest as ours to see the share price back on a growth track. (f) They will remain part of AEB's future, possibly till January 2015. I think investors get confused who to blame for the low share price. The fault of the low share price can be placed squarely at the foot of Patterson's "proffessional" investors who flogged the stock they were issued at a huge discount in the hope of making a few short term profets. Secondly, it can be placed at the feet of current investors who cannot discern that they are currently sitting on a gold mine whose value baffles the imagination. After third party testing of the Nowra site over the next 2 - 3 months, maybe some of that value will be unlocked for investors.
AEB Price at posting:
37.0¢ Sentiment: LT Buy Disclosure: Held
