WPL buy, page-950

Hi Dugite, been thinking of another way of explaining my point.

Back in the day, Banks owned their branch buildings. Then they realised that they were better off selling the branch buildings- and using the money to do the stuff that bring banks their enormous profits- the return on doing bank stuff is greater than the return from renting out a bank building. If a bank branch was only earning building rent- then head office would not be impressed.

A pipeline owner makes one profit- the producers of the stuff that goes through the pipeline make a profit on the product that would be an order of magnitude greater. Maybe someone else has a better explanation?

Anyway, WPL needs product. Scarborough and Sangomar etc. Tolling receipts would be handy- but if WPL has too much of its capital tied up in NWS without returns from their own oil and gas- then the SP will be very very low. Lower than the $16.80 that we saw a month or so ago.

IMHO DYOR