I do not get this. 20% more equity , no real revenue for 2 or so years , and a price of 4.66. I have not seen any projections to go with the issue. I have shares , not certain if we will take up the SPP. Probably won't.
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I do not get this. 20% more equity , no real revenue for 2 or so years , and a price of 4.66. I have not seen any projections to go with the issue. I have shares , not certain if we will take up the SPP. Probably won't.
Depends what you define as "real", but I certainly wouldn't say it is anything near 2 years of "no real revenue", probably not even half a year of "no real revenue".
Insto placement all done and dusted at $4.66 AFR reporting.
I would think SPP is going to be bigly oversubscribed.
Who knows, they just might have been clever (or lucky?). I could well imagine scenarios over the next 12 months which will push the SP lower.
Discl: got an offer to participate in the bidding but decided not to. Pretty sure there will be better opportunities later on in the game.
A think there are a lot of long term holders who just want to secure a position and not look at the stock for 3-4 years and they’ll net from it I’m sure
But during the current circumstances I imagine there’s further risk with horrible half year and full reports but I guess there’s a risk in waiting for and hoping those downramp the stock price too and whether they are “priced in”, and wil institutes just manipulate the price above this one OR will they intentionally buy now and sell later to net huge gains from the long term holders who panic at the next dip
Disc not a holder
My back of the envelope shows AIA on a PE of around 30 in three years time. I think I'll play in another sandpit.
double post
Well, its quite risky infrastructure - isn't it? Power companies are expensive because they make reliably money come rain, snow or sunshine. And sure - for AIA it used to look like they could as well just grow into one direction.
However - we just learned that AIA might have a quite fickle earnings profile - i.e. it clearly deserves a lower PE than reliable money makers.
... and there is another crisis which might bite AIA. From memory their only runway is quite close to the sea. Does anybody know how much above sea level this runway is? Allow a bit more global warming and it might be unusable. If it survives the next 3 decades (which is in my view not a given), than at a PE of 30 investors might just get their capital back - without any interest.